ADVERTISING

ADVANTAGES OF ADVERTISING-

TYPES OF ADVERTISING-
ADVERTISING SPIRAL-

The concept of advertising can be broken down into three specific stages. These stages
refer to the advertising spiral. It is known as a spiral because in order to keep innovating,
companies need to continually change their advertising methods based on these three
stages and an unending spiral is created as their business grows and changes.
Understanding this spiral can help companies create better ad campaigns and improve
their overall advertising capabilities.
Pioneering Stage:

The purpose of the pioneering stage is to

provide enough knowledge to the consumers
regarding the new product. New products in
the market have to go through the first stage
that is the pioneering stage in the advertising
spiral. A product is regarded to be in this stage
till the time when the product is fully
appreciated by the customer and a new
tradition is set. This stage is more effective
than other advertising spiral stages because
this stage do more than just introducing the
product. The main objectives of this stage are
changing habits, develop new customs and to cultivate new standard of living. The
advertising message in this stage calls for a reinvention of the market where the product
can be launched. The concentration of the product in the market becomes easy due to the
type of message that is delivered to the consumer in this stage (Baker).

Competitive Stage:

Sometimes by effective media planning, the product is launched in a way that it becomes
popular among the masses and therefore its acceptance becomes sure in the market. The
problem that follows the way of this product is the competition. This stage helps consumer
to select the brand when there are more than one brand providing almost the same
benefits. The message of advertising in the competitive stage helps the consumer to
determine the difference among the brands (Sissors and Baron). For example the slogan
of Apple computes advertised their technology with the competitive slogan “The dawn of
the new PC era, 64 bit processor.”

Retentive Stage:

The retentive stage occurs when the product gains wide-spread acceptance among the
consumers and market. The retentive stage helps the existing and giant products to stay in
the minds of consumers. When successful brands stop advertising for their products then
consumers might forget it. Such brands are identified in the retentive stage. The message
of advertising in this stage is often in the form of posters with an illustration that is mostly
the logo oriented illustration.
SOCIAL ASPECTS OF BUSINESS-
AIDA MODEL-

BY- E. St. Lewis in 1989

The AIDA model describes the four stages a consumer needs to go through
to become a customer. The stages are Attention, Interest, Desire, and
Action (AIDA). During these four stages, your content will ideally attract
attention to your brand, generate interest in your product or service,
stimulate a desire for it, and spur action to try or buy it.

The AIDA model is considered a hierarchy of effects model, which means

consumers must move through each stage of the model to complete the desired
action. In theory, as they progress through each stage of the model,
consumers who learn about your brand will develop certain feelings or
emotions about your product or service, which is what ultimately compels
them to act.

Brands use the AIDA model to determine the way they should craft and
distribute marketing messages to their target audience at each stage of
the buyer’s journey. Just like a typical marketing funnel, each stage
has fewer consumers than the previous one.

How to Apply the AIDA Model to Your Marketing

Attracting Attention

To boost your brand awareness, research your target audience’s problems

and passions. Then, create content that solves their problems and focuses
on their passions. Your target audience should also be able to discover
your content through Google, social media, or another website.

If your content can grab their attention and deeply engage them, your
target audience will start to become curious about what your company
actually does.
Generating Interest

Once your target audience is interested in your product or service,

they’ll want to learn more about your brand, the benefits of your solution,
and your potential fit with them.

To make it easy to learn about your brand, solution, and fit, feature your
mission statement on your website, explain exactly what you do on your
homepage, describe the benefits of your solution on your product pages,
and offer ungated case studies.

Providing instant access to this information will help your target

audience visualize a pleasant future with your solution in their lives.

Stimulating Desire

The prospects you’re most likely to close are the consumers who envision
a future with you -- they already enjoy consuming your content and think
your product or service will be even better.

But to generate enough excitement in your prospects to compel them to act,

you need to make sure their affinity for your brand hits a certain
threshold.

To do this, keep serving them content. Make sure they subscribe to your
blog, follow you on social media, and download your offers. The more
prospects interact with your brand, the more they’ll trust you, boosting
the chances they’ll eventually buy your product or service.

Spurring Action

After you generate enough desire for your product or service, give your
prospects the chance to act on it. Place "request a demo", "free trial",
and "contact sales" CTAs on your homepage, pricing page, and product pages.
After all, what’s the point of creating content and building deep
relationships with prospects if there isn’t a clear next step?
 Attention – The consumer becomes aware of a category, product or
brand (usually through advertising)
↓

 Interest – The consumer becomes interested by learning about

brand benefits & how the brand fits with lifestyle
↓

 Desire – The consumer develops a favorable disposition towards

the brand
↓

 Action – The consumer forms a purchase intention, shops around,

engages in trial or makes a purchase

HIERARCHY OF EFFECT-

The hierarchy-of-effects theory is a model of how advertising influences

a consumer's decision to purchase or not purchase a product or service.
The hierarchy represents the progression of learning and decision-making
consumer experiences as a result of advertising. A hierarchy-of-effects
model is used to set up a structured series of advertising message
objectives for a particular product, to build upon each successive
objective until a sale is ultimately made. The objectives of a campaign
are (in order of delivery): awareness, knowledge, liking, preference,
conviction, and purchase.
The hierarchy of effects model is a model which tells advertisers to make
an advertisement in such a way that the customer goes through all these
six stages namely awareness, knowledge, liking, preference, conviction
and purchase. It is created by Robert J Lavidge and Gary A Steiner in 1961,
the hierarchy of effects model suggests six steps to consumer buying
behaviour.

Hierarchy of Effects Steps

The steps are defined as below:

1. Awareness: This is the most crucial step and the starting point for
purchase. Brands must make sure that the consumer is aware of the presence
of your brand in a particular product segment.

For example, if Tina wants to buy a toothbrush, and you as the marketing
manager of Coolgate wants her to buy your brand’s toothbrush, you have
to make sure that you advertise well so that she is aware of the existence
of such a brand for toothbrushes.

2. Knowledge: This is where your product will be evaluated against other

brands by the consumer. Make sure enough (positive) knowledge is available
about your product – through the internet, retail stores and the product
package itself.

For example, now Tina, aware that there is a Coolgate brand will try figure
out what unique features and benefits you are offering over any other brand
like Colgate and Oral-B.

3. Liking: This is where the consumer builds a liking to your product.

This is where your product is being considered for its emotional benefits;
be sure to make them prominent.

For example, now Tina has evaluated the pros & cons of buying a Coolgate
brush but might not like the colour of it, or might feel that this brush
is for the elderly. As the marketing manager of Coolgate, you have to make
sure that these features, that leave emotional impact, are taken care of
properly in the marketing communication program.
4. Preference: By this time consumer may be convinced to try out your
product, but may like other brands of toothbrush too. So what is it that
will make her prefer Coolgate over the other brands? These points of
differentiations or unique selling points need to be highlighted to make
sure that the consumer likes your brand more than the others in her
consideration list.

For example, Tina now may be actually considering buying a Coolgate

toothbrush. But is she thinking that she’ll buy it to try it only or is
she thinking that the next buy will also be a Coolgate brush?

5. Conviction: This is the stage where the doubt in consumers’ minds about
buying the product of your brand needs to be converted into action.
Marketers can aid in this step by giving out free samples, test drives
etc. This step should also decide if the consumer will stick to your brand
i.e. actually buy your brand, or switch after testing the sample.

For example, Tina tried the brush you gave her for a month and then when
time came to buy one, she bought an Oral-B one. Make sure that doesn’t
happen and that trial builds loyalty. Incorporate such unique features
in your brand that will encourage purchase.

6. Purchase: The last and the most crucial stage of the consumer buying
cycle is the purchase. You need to make sure that purchase experience is
easy and perhaps even enjoyable for the consumer. Some of the ways to
encourage purchase is by keeping simple and multiple paying options,
making the product available easily, easy to understand usage
instructions, offers etc.

For example, now that Tina has decided to buy your brand after trying it
out for a month, make sure she knows where to buy it from and how she can
pay. You may also give her a tube of toothpaste free to delight her.

The main aim of this tool that serves as a marketing communication tool
is to encourage consumers to go through the six steps that end in purchase
of product. It is not necessary that consumers always go through all the
six steps but the aim is to land a purchase.

Hierachy of Effects Consumer Behaviour Stages

Lavidge and Steiner further grouped these six stages into three main
stages of consumer behaviour:

1. Cognitive

2. Affective

3. Conative

1. Cognitive: Also called the “thinking” stage, this is where the

consumer gathers knowledge about the product and becomes aware of it. This
can be said to be a rational step where pros and cons, product
specifications etc. of a product are evaluated.

2. Affective: Also called the “feeling” stage is when the consumer

starts developing a liking for the product, and may even develop strong
positive (or negative) feelings toward it.

3. Conative: This is the “behaviour” stage of the process. This is when

the consumer, after weighing the pros and cons, and deciding his/her
preference actually buys the product.

The model is named so because of the fact that the buying process is a
step by step process where the number of people willing to participate
at each level keeps decreasing. Say you started with 10 people who are
aware of your brand; 5 people who considered buying it and only 2 of those

10 actually bought the product.

The hierarchy of effects model is a model which tells advertisers to make

an advertisement in such a way that the customer goes through all these
six stages namely awareness, knowledge, liking, preference,conviction
and purchase.
INNOVATION ADOPTION MODEL-

INNOVATION-ADOPTION MODEL

Innovation-Adoption Model was developed by Rogers in 1995. He postulated various stages in which
a target customer sails through from the stage of incognizance to purchase. The 5 stages of the
Innovation-Adoption Model are Awareness, Interest, Evaluation, Trial, and Adoption.
Innovation Adoption Model

AWARENESS

This is the primary stage of Innovation-Adoption Model. takes action is the awareness stage of the
model where the consumer becomes aware of a brand or a product mostly through advertisements.

INTEREST

This is the second phase of the Innovation-Adoption Model. This is a stage in which the information
about the brand or a product multiplies in the market and triggers the interest of the potential buyers
of the product to gain more knowledge and information about the product.

EVALUATION

Evaluation is the third stage of the Innovation-Adoption Model that supplements the necessary
information regarding the product to the consumers. In this stage, the consumers evaluate and try to
gain a deeper understanding of the product that stimulated interest in them.

TRIAL

In this stage, the customers try the product before making the final choice to purchase the product.

ADOPTION

Adoption is the final stage of the Innovation-Evaluation Model. In this stage, the customer accepts the
product, makes a purchase decision and finally purchases the product.

In the Innovation-Evaluation Model, the Awareness happens at the Cognitive Stage, developing an
interest and evaluation phases fall under the conviction phase, and the trial of the product and the
actual adoption fall in the Behavioral phase.

Planning framework of promotional strategy

HOW ADVERTISING WORKS-

EXPOSURE-

Definition

Advertising exposure is a presentation of an advertisement to the consumer.

Advertisers--ranging from agencies to small-business owners--attempt to
estimate the number of exposures necessary to achieve their objective.
The general advertising objective is to motivate consumers to buy or use
your product or service, change their thinking about your brand, or build
excitement. Examples of advertisements include print ads, radio and
television commercials, infomercials, advertorials, and billboards and
kiosks--both of which may be stagnant or interactive.
Pros

The goal of advertising is targeted audience exposure. Your choice of

advertising mediums and venues should support this goal. Small-business
marketing teams should focus on venues frequented by your target audience.
A small dry cleaner chain may have a local commercial, an ad in the local
newspaper (on and/or offline), and a deal with another local business to
trade advertising; for example, they may work out a deal with a pizza chain
where the dry cleaner supplements the cost of pizza boxes in exchange for
using its logo on the box or providing coupons on the menu.

SALIENCE-

Brand Salience is the degree to which your brand is thought about or

noticed when a customer is in a buying situation. Strong brands have high
Brand Salience and weak brands have little or none. This helps explain
to some degree why big brands are big and small brands are small: if no
one thinks about you at the moment of buying truth, your brand is going
to be relegated to the dustbin of small and unnoticed brands.

Brand Salience is the memory of your brand and its linkage to other
important memory structures. The buying situation ”mindfulness” and
linkage to memory structures is what differentiates Brand Salience from
top of mind awareness.

It depends upon 2 main factors-

1. Quantity of the memory structures

2. Quality of the memory structures

By maximizing the quality and quantity of the memory structures, Brand

salience can be build.

FAMILIARITY-

Brand familiarity is a uni-dimensional construct that is directly related

to the amount of time that has been spent processing information about
the brand, regardless of the type or content of the processing that was
involved.Thus, brand familiarity is the most rudimentary form of consumer
knowledge.

two principal ways in which brand familiarity might affect brand choice:
(1) by increasing the likelihood that the brand is included in the evoked
set, and

(2) by contributing to brand preference.

Advertisement is the only way through which the information about the
brand can be communicated to the consumers.

The type of the advertising and the message within tells how it is being
presented and what image will it form in the minds of the audience.

LOW INVOLVEMENT-

The High / Low involvement scale refers to how much time, thought, energy
and other resources people devote to the purchase process, from a lot to
a little.

The Emotional / Rational scale is a measure of reason vs. impulse, desire

vs. logic, passion vs. prudence. That sort of psychological stuff.

There are four general CIT categories:

- High involvement / emotional

- High involvement / rational

- Low involvement / emotional

- Low involvement / rational

Consumer involvement

Infographics are one type of medium to present information for Hi

Involvement / Rational purchase decisions.
High involvement / rational

In this category you find expensive business purchases: anything relating

to the technological infrastructure, the office location and lease, as
well as the company health insurance plan.

On the consumer side, high involvement / rational purchases tend to be

linked to high cost. This category can include financial services and
products, the purchase of a home or car, as well as major appliances and
electronics.

That said, high involvement consumer purchases can vary significantly on

the rational / emotional scale from individual to individual. For Ms.
Smith, a car is strictly a way to get to work, she does extensive
comparative research, and her selection is based on fuel economy and
reliability. it's a Hi/R purchase. For Mr. Wilson, a car is an important
expression of his status and ego. It's a Hi/E purchase.

Your task is to determine how the majority of your target market relates
to the purchase of the particular product or service.

For both B2C and BtoB markets, advertising for Hi/R purchases tend to be
copy driven, with clear explanations of features and benefits. Explainer
videos, slideshow and infographics can work well - as can information rich
websites.

> Every Creative Director set includes:

- 3 Quick and clever ways to get consumer insights.

- 9 Specialized creative briefs, each in multiple file formats.

- 4 DIY workshops with activity book and instructional slideshows that

include TV commercials, video and sample ads.

- Plus sample briefs, pro tips, and the extended slideshow:

How to write a creative brief.

High involvement / emotional

Business purchases that fall into this category might include such things
as office furniture and design, advertising and design, and perhaps even
the hiring of certain employees.

For individuals, high involvement / emotional purchases can include

special gifts, jewelry, holiday travel plans or anything related to a
wedding - as can the purchase of a home or car. Again, much depends on
the culture, person, and how much purchasing power she has.

Advertising in this category tends to focus on visual and emotional

appeals. Above all, that means emotionally evocative music, sounds and
visuals. Media considerations include highly interactive websites as well
as information kits with DVD / video and brochures.

Consumer Involvement

Low involvement / rational

These are the things we buy out of habit, without much thought. This
category includes most of the things you put into your basket at the drug
store or market. The places you eat lunch, say the local McDonald's. And
office supplies.

Here the typical role for advertising is to get people to switch - to break
the automatic habit of spending their money with the competitor. Consider
coupons and other incentives. Free samples can work well. Also, look at
ways to differentiate or re-position the product. Give the audience
compelling reasons to give your service a try.

Consumer involvement

Low involvement / emotional

The gratification we get from these products is emotional or sensual. But

that gratification is fleeting; it doesn't last a long time. So we don't
spend a lot of time thinking about the purchase. Movies, candy, an
entertaining magazine, or a birthday card fall into this category. For
some, selecting a restaurant for a special occasion.

The advertising challenge here tends to be the promise of pleasure, of

gratification, of a sensually rewarding experience. Strong positioning
can help, especially in a crowded product category. But the message should
be snapped quickly with strong visuals and powerful video. Movie trailers
are a good example of approaches that can work.

CENTRAL AND PERIPHERAL ROUTE-

Communication can have a persuasive impact through one of two routes.

Under the "central" route, post-communication attitudes are based on a
careful and thoughtful consideration of the persuasive arguments
contained in the message. Accordingly, post-communication attitudes
should become more favorable as the message arguments increase in quality.

Alternatively, a "peripheral" route to persuasion may occur. This

peripheral route does not involve diligent consideration of the message
arguments. Rather, post-communication attitudes are simply based on
peripheral cues that are associated with the message. These cues may take
a number of forms such as the quantity (rather than quality) of message
arguments, the source's attractiveness or credibility, and/or the type
of music which accompanies the communication.

According to theorists, persuasion happens in two ways which are the two
routes of persuasion.

Central route persuasion talks about the duration of the message being
shown to a person, the number of times, and the persuasiveness of the
message. The audience is active here and they believe what is shown or
told. If a content being shown is directly related, relevant and near to
the person, then the person is more likely to be persuaded to change
his/her behavior. It has facts, arguments, credibility, and expertise
which pull audience attention.

Peripheral route of persuasion is not being persuaded by facts but by fame

and popularity. It is superficial and is mostly based on attractiveness.
It is not elaborated and audiences are passive. People use mental
shortcuts for this. Change through this route is temporary and goes away
quickly.
A figure explaining elaboration likelihood model.

What is Central Route Persuasion?

Central route to persuasion is a concept from elaboration likelihood model

by Petty and Cacioppo. It is a process of getting influenced by facts and
reasoning.

Elaboration is the process of giving the same message again and again to
persuade a person. It can be more descriptive or the same message, but
should be shown for a long time.

If any message is elaborated, then the message recipient or the audience

gets persuaded more. The message remains in the person’s subconscious
mind, which makes them act irrationally at times.

Central Processing in this route has two prerequisites. They are:

Motivation

Ability to think

Motivation to change attitude or behavior comes from seeing the same thing
for a long duration as well as when the content of the message is strong.

If a person cannot think, the person will not give importance to message.
The person will only think if he/she cares about the topic or does not
get to understand the good features being described in the advertisement.

Features of Message in Central Route Persuasion

An image showing features of message in Central Route Persuasion.

Cite this article as: Palistha Maharjan, "Central Route Persuasion," in

Businesstopia, January 8, 2018,
https://www.businesstopia.net/communication/central-route-persuasion.

There are four features of messages used in central route persuasion. They
are:
Persuasive communication

Message given is one-sided and shows benefits.

Motivation to process

When a message is directly related to the person involved, the person will
be willing to change his/her attitudes and behavior according to the
message.

Ability to process

People do not get influenced while he/she is distracted and not listening.
There will be barriers in communication.

Nature of arguments

A strong, convincing creative message can change behavior and attitudes.

Examples of Central Route Persuasion

While watching television, a person who is interested in cars sees a car

advertisement. Though the person has a car, the person gets influenced
by the features shown of a new model of car. The advertisement has shown
facts and figures that really show the car to be better than what the person
has been using.

This is a case of a central route to persuasion. The person has the

motivation and an ability to comprehend. So, the person takes action and
changes his/her behavior.

If a person is shown to be a terrorist by reputed media news, then people

who watch it believe in it and think so too.

For example, you need to choose the president of students union in your
university. If you are influenced by central route, then you hear what
both leaders who have stood for election say and then decide who you’ll
vote. But if you are influenced by peripheral route, you might vote the
one who is better looking or who is more famous or who is a friend of your
friend.
Differences between Central Route Persuasion and Peripheral Route
Persuasion

People who get influenced by peripheral route of persuasion are passive

and are unwilling to think much about the message unlike that of central
route persuasion.

The peripheral route makes the message as interesting and attractive as

possible to attract attention and make people change their behavior.
Whereas, people belonging to the other category believe in authenticity
and facts.

“Attitude changes that result mostly from processing issue-relevant

arguments (central route) will show greater temporal persistence, greater
prediction of behavior, and greater resistance to counter persuasion than
attitude changes that result mostly from peripheral cues”- Petty &
Cacioppo, 1986

Commercial advertisements use peripheral route while informative

programs use the central route to persuasion.

Central route transformations last longer than that of the peripheral

route.

There is high-involvement processing in central route whereas

low-involvement processing in the peripheral route of persuasion.

COGNITIVE LEARNING-

AD POSITIONING-

Brand positioning means-

Brand Positioning can be defined as an activity of creating a brand offer

in such a manner that it occupies a distinctive place and value in the
target customer’s mind. For instance-Kotak Mahindra positions itself in
the customer’s mind as one entity- “Kotak ”- which can provide
customized and one-stop solution for all their financial services needs.
It has an unaided top of mind recall. It intends to stay with the
proposition of “Think Investments, Think Kotak”. The positioning you
choose for your brand will be influenced by the competitive stance you
want to adopt.

An ad position strategy allows a company to focus on a particular aspect

of its products or services. The ad position itself is the central theme
or message, such as superior customer service. Small business owners may
highlight any number of positions or benefits in their advertising. The
key is keeping the message commensurate with various marketing strategies,
including product or service, pricing and distribution strategies.
Advertising managers must also find the right media mix to reach their
customers. All print ads and commercials must also be in alignment for
the greatest impact.

Appealing to Target Audience

One popular ad position strategy is appealing to certain target audiences.

Small companies often start out with this type of ad positioning as they
try to establish loyal customer bases. They must attract customers who
are most likely to use their products. Most advertising managers have a
general idea about their target audiences before placing their ads and
commercials. The success of the campaign may only help support this
insight. Companies which appeal to target audiences focus on various
demographics, including age, social status and education. They may also
try to attract people with certain buying patterns, interests or
lifestyles.

Supporting Product Strategies

An ad position strategy can also support or enhance a company's product

strategy. Some companies use advertising to position certain product
attributes, according to the University of Missouri. For example, a small
fast food restaurant may be trying to position itself as the quality leader
in its local markets. The restaurant company may run ads that show the
fresh ingredients used in its sandwiches or salads. Similarly, ad position
strategies can also enhance or repair a product's image. Negative
publicity may have caused consumers concern about a company's products.
These concerns may emanate from an aggressive competitor, or a customer
who had a bad experience with a product. Hence, advertising can be used
to help repair the company's image.

Supporting Pricing Strategies

Small companies may also use ad position strategies to support their

pricing strategies. For example, a small town grocery store may want to
position itself as the value leader. It may offer products in larger
quantities so people can save money buying in bulk. The grocery store owner
may also use daily specials that meet or beat most food prices in the area.
Hence, his local advertising may be more price-oriented, informing
consumers about various items as they go on sale.

Supporting Diversification Strategies

Companies may want to diversify their products at times and thus require
advertising that informs customers of the changes. Consumer tastes often
change. Customers may want more features, size varieties or flavors, for
example. Hence, small business often needs to modify or add products. And
they need to position their advertising to support these changes.
Companies may also need to change their ad positioning strategies
throughout the life cycle of a product. Most products go through four life
cycle stages, according to "Quick MBA" online: Introduction, growth,
maturity and decline. Companies may need to discover new uses and markets
for their products in the latter two stages to keep them from becoming
obsolete. Subsequently, they must inform their customers of the changes
through their advertising.

DEVELOPING BRAND PERSONALITY-

What Is Brand Personality?

Brand personality is a set of human characteristics that are attributed

to a brand name. A brand personality is something to which the consumer
can relate; an effective brand increases its brand equity by having a
consistent set of traits that a specific consumer segment enjoys. This
personality is a qualitative value-add that a brand gains in addition to
its functional benefits.
Brand Personality

Understanding Brand Personality

Brand personality is a framework that helps a company or organization

shape the way people feel about its product, service, or mission. A
company's brand personality elicits an emotional response in a specific
consumer segment, with the intention of inciting positive actions that
benefit the firm.

Examples of Brand Personalities

Customers are more likely to purchase a brand if its personality is similar

to their own. There are five main types of brand personalities with common
traits:

Excitement: carefree, spirited, and youthful

Sincerity: kindness, thoughtfulness, and an orientation toward family

values

Ruggedness: rough, tough, outdoorsy, and athletic

Competence: successful, accomplished and influential, highlighted by

leadership

Sophistication: elegant, prestigious, and sometimes even pretentious

Dove, for example, chooses sincerity as its brand personality, to attract

feminine consumers. Luxury brands, such as Michael Kors and Chanel, aims
for sophistication. Their brand personality focuses on an upper-class,
glamorous, and trendy lifestyle, which attracts a high-spending consumer
base. REI, the outdoor recreation retail store, has a rugged brand
personality; they focus on inspiring their audience—who are typically
outdoorsy, adventurous people—to be strong and resilient.

AD COPY-

The basic function of the advertisement is to influence and motivate

people that is achieved through advertisement copy. The words used to
convey the advertising idea or theme are called “copy”. The person who
writes the copy message is called the copy-writer.

Characteristics of an Ad Copy-

1. It should act as a bridge between the advertisers and readers.

2. It must have a personal appeal.

3. What must be clear must also be important.

4. It should bring out the personality of the advertiser in terms of

quality.

5. It must be reasonable but never dull.

6. It should be imaginative but never misleading.

The physical nature of advertisement copy should have 4 factors-

1. Description

2. Narration

3. Exposition

4. Arguementation

Values in an ad copy-

1. Suggestive value-

Ex- don’t talk about the hottest summers just install a blue star
air-conditioner.

2. Educational value-

Ex- mutual funds,life insurance

3. Attention value

Ex-using picture and drawings ; headline, slogans, jingles. Ex- ghadi

detergent, pehle istemaal kare fir vishwaas kre.
4. Sentimental value-

Ex- for every one notebook you buy P&G donates 1rs. for donation.

5. Memorizing value-

Ex- horlicks give extra energy

6. Instinctive value-
ex- using the instincts of the people with feelings like Pride, fear,
economy, etc.

7. Conviction value

Ex- hungry? Grab a snickers

8. Action value-

ESSENTIALS OF A GOOD ADVERTISEMENT COPY

An ad copy is made of various principles, all of which are integrated into

a few lines of the copy that the advertisers are allowed to engage. It
combines search engine optimisation with marketing strategies and is used
in all kinds of advertisements, not only pay per click and contextual ads.
The essentials of a good ad copy are as follows:

Essentials Of An Ad Copy

Credibility- An ad copy must focus on the credibility or the reliability

of the ad. The copywriters should essentially flaunt an element of
reliability in the ad so that the consumers are convinced to go ahead with
the product. The credibility of an advertisement is the extent of honesty
in the ad message. Misleading and misinterpreted ads harm the reputation
of the selling house.

Attention- The keywords, punch lines or phrases that seize the attention
of the potential consumers or some component in the ad that attracts the
target audience is essential in a good advertising copy.

Assurance of benefit– An advertisement copy must contain some promise

of the benefits that the product offers if the consumer purchases and uses
the product.

Brief and clear- An ad copy must be brief and clear, i.e. it must be to
the point. It doesn’t mean that the copy must omit the important elements
of the ad. A clear copy is easy and quick to be read by the readers. It
is self-explanatory, definite, and precise. Clarity makes way for
interpretation.

Apt and conforming- The copy must be apt and must match the needs of the
prospects. A copywriter has to use the most suitable USP. Every ad copy
must meet the conforming standards and rules acceptable to the advertising
media and the laws of the land. A copy that offends the morality challenges
religious beliefs of the people is not welcomed by any media.

Types Of Advertising Copy

Technique or formula of presentation of an ad is the way in which a message

is presented. Various types of advertisement copies are formulated to
inform, inspire, influence, affect, engrave, and inscribe the mindset of
the reader. Certain elements are significant in a copy like the attention,
conviction, sentiment, instinct, and education.

The advertisement copies can be divided into six main types:

Human interest ad copy

Educational ad copy

Reason why? ad copy

Institutional ad copy

Suggestive ad copy

Expository ad copy

Types Of Ad Copy

Human Interest Copy

Human interest copy entices the emotions and senses of its prospective
customers rather than the intellect and judgment. This advertisement copy
defines the product to people instead of sticking to facts. Human Interest
copy gets to selling part indirectly or reluctantly. It focuses on
people’s undying interest in themselves, their families and friends. The
most important forms of Human Interest Copy are- humorous copy, fear copy,
predicament copy, and story copy.

Forms Of Human Interest Copy

HUMOROUS COPY

Humorous ad copy is a copy which is designed to make the reader laugh.

This copy brings about a smile on the readers face.

FEAR COPY

Fear ad copy arouses a sense of fear in the reader to save their lives
or to protect themselves from something. It creates interest among its
consumers by instilling a sense of fear in them. Fear advertisement copies
must be designed carefully as it may carry an unpleasant association on
the viewer’s mind concerning the product.

STORY COPY

In a story copy, a story is narrated in a very interesting way to develop

interest amongst its prospects. Customer experiences can also be narrated
in the form of a story.

PREDICAMENT COPY

In a predicament copy, the copy provides a dramatic explanation about the

product. This copy explains all the advantages and benefits of using the
product. The predicament copy usually takes over the other three forms
of the advertisement copy.

Human Interest Copy Example

Reason Why Copy

A Reason Why advertising copy offers reasons as to why the consumers are
expected to buy the product of a particular brand. The reason why copy
appeals directly to the intellect or the judgment of an individual than
the emotions. It tries to explain the product qualities and benefits by
giving evidence in the forms of testimonials, guarantees, customer
experiences, and so on.

The approach of this copy explains reasons to readers as to why the

advertised product has to be purchased. The format of this copy states
a fact about a product or a service in the headline and then explaining
why the fact is true in its further text. This form of advertising works
better in print than on media, because broadcasting an ad has a limitation
with respect to time. There are good chances of the viewer missing the
headline or the reasons why the headline claims to be the truth.
Educational Ad Copy

An educational ad copy attempts to inform, update and prompts its clients

to buy a product by educating the prospective customers. It is designed
to educate the public about the attributes of the product. Introductory
ad copies are usually created in this way. It is the responsibility of
every manufacturer to educate the prospects regarding the product and
endure a warm welcome amongst its clients. Such an ad copy signifies the
benefits and special features of the product.

Institutional Ad Copy

Institutional copy doesn’t sell its goods and services. Institutional

ad copy aims at promoting the selling house. It focuses to build a strong
reputation for the selling house. The main objective of this type of ad
copy is to create, maintain, and increase the goodwill through its
philosophy, objectives and policies so that the prospective customers
register it in their minds. Institutional copy invites the target
customers to the selling outlet. It is also called as prestige or corporate
advertising.

Example:

Institutional Copy Example

Suggestive Copy

A suggestive copy suggests or attempts to convey the message to the readers

directly or indirectly and prompts them to purchase the product.
Suggestive ad copy works best when the reader is confused regarding the
quality of the product and is juggling with decision making regarding his
purchase.

Expository Copy

Expository copy conflicts with the Suggestive copy. An Expository copy

doesn’t conceal anything about the product but instead exposes the facts
that are clear and apt. It describes the product features, uses, merits,
operation and benefits of the products or services. Even a swift glance
registers quickly in the consumer’s mind and is quite easy to remember
or pick up.
Writing an ad copy is an art of putting in the words or the elements that
create a strong desire to possess the product wherein the product features
satiate the consumers desire to possess the product. It is the ability
to eliminate the surplus and substitute it with the essential elements
without jeopardising the meaning.

Action is the essential end goal of any advertisement copy, which is to

receive some reaction from the target audience for the advertisement. It
could be just about visiting the page of the brand on the net, enquiring
or filling a form or the actual purchase itself.

AD COPY STRATEGY-

RATIONAL AND EMOTIONAL APPEAL-

Advertising Appeals refers to the approach used to attract the attention

of customers and/or to influence their feelings towards a product or
service.

An appeal is the central idea of an advertisement. It can be a plea, request

or anything arising human interest. Advertising appeals can be
categorized into Informational or Rational Appeals and Emotional Appeals.

Informational or Rational Advertising Appeals

Informational/Rational Appeals focus on the consumers practical,

functional need and utility for the product or service. It emphasizes on :

(a) Features of a product or service and/or

(b) The benefits of owning or using a particular brand

(c) Problem removal or problem avoidance attribute of a product.

Rational advertising appeals tend to be informative and advertisers using

them generally attempt to convince customers that their product or service
has a particular attribute(s) or provides a specific benefit that
satisfies their needs. Their objective is to persuade the target
audience to buy the brand because it is the best available or does a better
job at meeting consumer needs.
Some of the rational motives used as the basis for advertising appeals
include comfort, convenience, economy, health, sensory benefits such as
touch, taste, smell. Other rational motives used include quality,
dependability, durability, efficiency and performance.

The particular attributes of a product that are important to consumers

and can serve as the basis of informational or rational appeals vary from
one product category to another as well as among various market segments.

Some of the advertising appeals that fall under the category of rational
appeals :

• Feature Appeal – Ads that use a feature appeal focus on the dominant
traits of the product or service. These ads tend to be highly informative
and present the customer with a number of important product attributes
or features that will lead to favourable attitudes and can be used as the
basis for a rational purchase decision. Technical & high-involvement
products such as automobiles often use this type of ad appeal.

• Competitive Advantage Appeal – Advertiser makes either a direct or

an indirect comparison to another brand (or brands) and usually claims
superiority on one or more attributes. (comparative advertising)

• Favorable Price Appeal – It makes the price offer the dominant point
of the message. It is also used by retailers to announce sales, special
offers, or low everyday prices. In India, “I am loving it” campaign by
McDonalds has made price an important part of their marketing strategy.

• News Appeals – These are those in which some type of news or announcement
about the product, service or company dominates the ad. This type of appeal
can be used for a new product or service or to inform consumers of
significant modifications or improvements.

• Product/service popularity Appeals – The popularity of the product

serve as the basis of the appeal. Advertisers stress the popularity of
a product or service by pointing out the number of consumers who use the
brand, the number who have switched to it, the number of experts who
recommend it, or its leadership position in the market. The implied
meaning of this appeal is that the wise use of brand proves its superior
quality and worldwide satisfaction therefore other customers should
consider using it.
Emotional Advertising Appeal

Emotional appeals relate to the consumers social and/or psychological

needs for purchasing a product or service. Many consumers motive for
their purchase decisions are emotional and their feelings about a brand
can be more important than knowledge of its features or attributes.
Advertisers for many products and services view rational/information
based appeals as dull. Many advertisers believe that appeals to
consumers emotions, work better at selling brands than rational appeals.

Such an appeal promises a bonus which may be emotional satisfaction or

social approval. It may also serve as a status symbol for the consumer.

Emotional appeals focuses on the experience of using a brand. The customer

must depict the ad as experiencing some emotional or transformational
benefit from using the product such that they cannot recall the brand
without the experience generated.

Basis for emotional appeals – It focuses on :

(i) Personal state or feeling –

Safety Sentiment

Security Excitement

Fear Sorrow/grief

Love Pride

Affection Achievement/accomplishment

Happiness Self-esteem

Joy Actualization

Nostalgia Pleasure

Comfort Ambition

(ii) Social-based feelings –

Recognition Affiliation/Belonging

Status Rejection

Respect Acceptance

Involvement Approval
Embarrassment

• Fear Appeals – Fear is an emotional response to a threat that expresses

or implies, some sort of danger. Ads sometimes use fear appeals to evoke
this emotional response and arouse individuals to take steps to remove
the threat. e.g. Anti-smoking campaign, some deodorants, mouthwash,
anti-dandruff shampoos, threaten disapproval or social rejection.

• Humor Appeals – Advertisers use humor for many reasons. Humorous

messages attract and hold consumers attention. They enhance
effectiveness by putting consumers in a positive mood, increasing their
liking of the ad itself and their feeling towards the product or service.

ENDORSEMENT-

Endorsements are a form of advertising that uses famous personalities or

celebrities who command a high degree of recognition, trust, respect or
awareness amongst the people. Such people advertise for a product lending
their names or images to promote a product or service. Advertisers and
clients hope such approval, or endorsement by a celebrity, will influence
buyers favourably.

Selecting Celebrities for Endorsement using the “Source Factors”

The Source Factors as celebrity selection strategy can be divided into

three main types: Source Credibility, Source
Attractiveness and Source Power.

Source Credibility

Credibility is the extent to which the receiver sees the source as having
relevant knowledge, skills, experience and trust to give unbiased and
objective information. Source credibility is used to imply a
communicator‟s positive characteristics that will affect the receiver‟s
acceptance of a message (Ohannian, 1990). Hovland, Janis and Kelley (1953)
proposed that expertise and trustworthiness (also referred to as
reputation) are the essential factors that would influence

consumers‟ perceived credibility of a message.

Trustworthiness (reputation) is referred to as the degree of consumer‟s

feeling that how much reliable the message carried by endorsers is.

Expertise is defined as the extent to which a communicator is perceived

to be a source of valid assertions. It refers to the authoritativeness,
competence, qualifications, knowledge, experience or skills possessed by
an endorser in a particular product or service endorsement.

Source Attractiveness

Source attractiveness is more related to physical attributes, such as

classy, similarity, familiarity, handsome / beautiful, elegance and
likability of a potential celebrity endorser. These are important in the
individual‟s initial judgment of another person (Ohanian, 1990). McGuire
(1985) (as cited in Endrogan, 1999) contends that the effectiveness of
a message depends on similarity, familiarity and likability of an endorser
who can be seen as attractive or unattractive.

Source Power

When mentioning the power celebrities have in advertising, one mainly

refers to how well they can persuade the consumer to a purchase. This is
very beneficial in personal selling, where personal communication can be
an efficient way to convince or lead a consumer into a purchase (Ohanian,
1990). However, the power as source characteristics is very difficult to
apply in a non-personal influence situation such as advertising. The
reason is that a celebrity in an ad generally cannot apply any sanctions
to the receiver of the message or determine any compliance that will
actually occur.

BRAND IMAGE-

Brand image is the current view of the customers about a brand. It can
be defined as a unique bundle of associations within the minds of target
customers. It signifies what the brand presently stands for. It is a set
of beliefs held about a specific brand. In short, it is nothing but the
consumers’ perception about the product. It is the manner in which a
specific brand is positioned in the market. Brand image conveys emotional
value and not just a mental image. Brand image is nothing but an
organization’s character. It is an accumulation of contact and
observation by people external to an organization. It should highlight
an organization’s mission and vision to all. The main elements of
positive brand image are- unique logo reflecting organization’s image,
slogan describing organization’s business in brief and brand identifier
supporting the key values.

Brand image is the overall impression in consumers’ mind that is formed

from all sources. Consumers develop various associations with the brand.
Based on these associations, they form brand image. An image is formed
about the brand on the basis of subjective perceptions of associations
bundle that the consumers have about the brand. Volvo is associated with
safety. Toyota is associated with reliability.

Example- David Ogilvy in his book says that it was the early advertisement
of Dove where they positioned it as a bathing soap with nourishment instead
of a detergent bar for washing the grease off the men, and even after 40
years, the brand has retained its image as a bathing and nopurishment soaps
because of the ad strategy.

EXECUTION USP-

A unique selling proposition, more commonly referred to as a USP, is the

one thing that makes your business better than the competition. It’s a
specific benefit that makes your business stand out when compared to other
businesses in your market.
Pinpointing your USP starts with extensive market research. The first step
to establishing a strong connection with your customers is figuring out
what motivates their buying decisions and what they care about. There are
many different sales features, such as convenience, quality, friendliness,
reliability, cleanliness, customer service, etc., that can influence your
customers’ decisions and entice them to come back. Without that knowledge,
understanding what matters to your target audience and focusing on it in
your marketing materials will be impossible.

Examples of effective USPs

Domino’s Pizza: “You get fresh, hot pizza delivered to your door in 30
minutes or less, or it’s free.”

Target: “Expect More. Pay Less.”

DeBeers: “A diamond is forever.”

TOMS Shoes: “With every pair you purchase, TOMS will give a pair of new
shoes to a child in need. One for One”

Colgate: “Improve mouth health in two weeks”

Testimonials

The testimonial executional style entails a person with product

experience providing a positive report on the brand (Belch & Belch,
2007:277). It is most effective when the person used in the testimonial
is credible and the audience can relate to the message.

Two types of endorsers may be used, namely typical-persons and celebrities.

Typicalperson endorsers are non-celebrities that are deemed credible,
since they have experience of the product and are easy to relate to
(Blakeman, 2007:194). An example is the testimonial provided in the Airtel
advertisement where it tells that Ookla a global leader in technology
testifies that Airtel has fastest network in India.

Slice-of-life execution

Also referred to as the problem/solution approach, slice-of-life

advertisements present an everyday situation where a person is faced with
a consumption problem that occurs in daily life. The problem is then solved
by using the advertiser’s product. Generally, it depicts a social
scenario where people discuss a specific problem, and then someone
provides a solution in the form of the advertised brand. The brand is

then tried out and the results are always positive. Arens et al. (2011:403)
advise that the secret to successful slice-of-life advertisements is
simplicity – the advertisement should focus on a key benefit that is
presented in a realistic and memorable manner.

The slice-of-life approach adds feelings and recognition to the basic

provision of facts and allows the audience to identify with the situation
(Ouwersloot & Duncan, 2008:179). Many household cleaning products are
advertised using this approach. For example, a TIDE washing detergent
commercial shows that how women washing white clothes are not able to get
a shiny white look in the clothes.

COPY FOR TELEVISION ADVRTISEMENT-

The different copy formats for television commercials are related to the
executional styles and advertising appeals discussed previously. Copy
formats listed by various authors are illustrated in Table 3.3.

Table 3.3 Copy formats for television commercials

Copy format Source

Storyline/narrative

Slice-of-life/problem solving/dialogue

Testimonial

Spokesperson

Demonstration

Fantasy/animation

Arens et al. (2011:399-403)

Koekemoer (2004a:165-166)

O’Guinn et al. (2009:396-397)

Chronological

Special effects

Satire

Suspense
 Analogy

Personality

Direct response

Koekemoer (2004a:165-166)

Straight announcement

Lifestyle

Arens et al. (2011:399-403)

Music and song

Vignette

O’Guinn et al. (2009:396-397)

O’Guinn et al. (2009:396-397)

117

Table 3.3 shows that various authors agree on certain formats. The common
formats are similar to the executional styles discussed previously in
Section 3.2.2.

O’Guinn et al. (2009:398) propose several guidelines for television

copywriting, including the effective use and support of the video
component. The audio element should also be coordinated with the video
and the commercial should sell the brand and be entertaining.

Flexibility in copywriting as well as prudence in the amount of

information provided is also advisable.

In developing the copy, care should be taken that the idea will be able
to run across a whole advertising campaign, and the brand image should
be clear in the message. The 2009 advertising campaign for Sun
International used the South African-born actress Charlize Theron who was
depicted having fun while utilising all the various entertainment

aspects of the casino group, and thereby portraying a brand image of fun,
excitement and entertainment.

The content of a television commercial is detailed in the script and

storyboard (Blakeman, 2007:190). The television script contains detailed
instructions, as well as all the verbal and musical information that will
be in the commercial. The storyboard details the visual aspects.
Television commercials consist of video, audio and other elements of
importance (Wells et al., 2006:374). These aspects will all be addressed
next.

Video

The video component of television advertising constitutes the visual

element and is of cardinal importance. O’Guinn et al. (2009:396) maintain
that the copy for television commercials should be finely tuned to the
visuals. The visuals of a television commercial

are illustrated by using a storyboard, which is a succession of pictures

and words explaining the planned commercial visually (Ouwersloot & Duncan,
2008:192). It includes the visuals, as well as the exact timing sequences
thereof.

The visuals in television commercials, as laid out in the storyboard are

referred to as scenes; and these are framed individually on the storyboard
(Blakeman, 2007:191). Every scene represents a major event in the
commercial or a location change. The dialogue and 118 instructions for
each scene are added under the scene frame and represent the exact

script and its accompanying visual elements.

Expressing the main idea of the advertising message is the responsibility

of the visuals and of the action of the television commercial (Wells et
al., 2006:374). The advertiser needs to take care when selecting
presenters, action sequences and other aspects in television commercial
design, as these have to form a coherent whole that will reach the

target audience.

The identifying symbols, such as the brand and characters in the

commercial are also important (Belch & Belch, 2007:285). For example, an
advertiser of ladies’ perfume should select a female model who will suit
the brand image and be relevant and identifiable to the target market.

Audio

The copy and video of the commercial are supplemented by the audio
component. Well set al. (2006:374) identify music, voices and sound
effects as being the audio elements in television advertising. Music is
often used to elicit a particular emotion or mood from the audience (Belch
& Belch, 2007:285; O’Guinn et al., 2009:396).

Voice-over artists (sometimes celebrities with identifiable voices) are

used to narrate the actions portrayed or to deliver the message. An example
of the effective use of voiceovers is the South African communications
company, Cell C, which uses a distinct female voice in their broadcast
advertising campaign - a voice that has become synonymous with the brand.

Other elements

The setting, cast, costumes, props and lighting are also important to the
effectiveness of the television commercial. Props in particular are
useful in indicating a particular role portrayal. For example, a housewife
may be depicted using a vacuum cleaner, which is a prop in the
advertisement.

The cast of the commercial is often central to the success of the message
and includes various parts, such as announcers, spokespeople, character
types and celebrities (Well set al., 2006:375). In this manner,
celebrities are often used as endorsers of the brand in advertising
(Ouwersloot & Duncan, 2008:188). An example is the female tennis player

Venus Williams, who endorses a wide variety of brands including Puma, Nike
and Avon.

The cast of the commercial is also referred to as the talent. Actors and
actresses in the commercials are carefully selected to reflect the brand
image and to provide a point of reference for the target audience. The
example of Venus Williams as endorser of Puma serves this point, since
she is a successful sportswoman who is admired and emulated by many young
women.

The visuals used in advertising include various elements (such as the

product and props),as was discussed in Section 3.3. North (1987:127)
identified two additional elements,namely the background and the models.
These will be discussed in Section 3.4. The background to the advertising
message can be divided into indoor and outdoor settings.

The background setting in the advertisement or commercial is useful for

inferring role portrayals - for example, a woman shown in an office setting
is classified as a career woman or a working woman.

LAYOUT PROCEDURES-

Step-I:

Thumbnail sketches:
Frequently layout starts with thumbnail sketches, simple drawings that
contain an ad’s basic elements. These small sketches are generally drawn
in the experimental stage to show the different ways of arranging the
elements. Not every designer uses a thumbnail sketch, however; some skip
this step altogether and begin with the rough.

Step-II:

Rough:

The rough, or visual, evolves from the acceptable thumbnail and although
it is still some what sketchy, it begins to present more detail. The
purpose of the rough is to convey the idea to agency personnel. It is the
same size as the future advertisement, but the illustrations are roughed
in, the head lines are lettered hastily, and the copy blocks are
represented by horizontal parallel lines.

Despite the hosty sketching and lack of detail, tonal values are clearly
apparent, as is the spacing of the elements. The rough is good for analysis
and criticism and a number of roughs may be completed before the final
one is accepted (Fig. 21.6).

Rough Layout of Visualization

Many agencies feel that roughs are fresher and have more spontaneity than
the comprehensives which is the next steps. Therefore, they use roughs
exclusively to show to clients. The philosophy behind this is that the
client is required to judge the idea, not its execution. Roughs are also
less expensive.

Step-III:

Comprehensive:

A comprehensive usually appears on heavy paper or card board and provides

further refinement of the rought. The art work is shown in approximately
its final form or when a photograph is used, the photograph or a carefully
prepared postal representing it will be pasted into position.
Head lines are carefully traced or reproduced by other means. Typed matter
is shown by ruled lines and careful lettering is shown in its exact hue
and value to indicate tone and colour.

Comprehensives are expensive. They are frequently prepared by a

free-lance artist or art studio and used to help the client judge the
effect of the finished advertisement. Payment for the art work is subject
to negotiation when an agency is hired.

Generally advertising agencies absorb the cost of finished layouts in

commissions they receive from media, but the client may be billed for the
additional expense of a comprehensive layout when a comprehensive is not
prepared the finished layout, which is more carefully executed than the
rough, may be submitted to the client for approval.

Step-IV:

Paste up or mechanical : The paste up or mechanical, is actually a step

beyond layout, but is so closely allied that it is frequently considered
as part of the process. To determine the size for the paste up, the designer
can refer to a publication rate card or standard rate and data service
which offers such information for various media.

The paste up contains all the elements of a layout. Often the type is
photographed in place but, the art elements are photographed separately.
Then all parts are “stripped in and made into a final film—from which
plates are made.

Principles of Effective Layout:

Fundamentally a good layout should attract attention and interest and

should provide some control over the manner in which the advertisement
is read. The message to be communicated may be sincere, relevant and
important to the consumer, but because of the competitive noise in the
communication channel, the opportunity to be heard depends upon the
effectiveness of the layout.
In alteration to the attracting attention, the other requisite for the
effective layout includes:

(a) Space division and balance

(b) Proportion

(c) Movement

(d) Unity

(e) Emphasis

(f) Clarity and simplicity.

(a) Space Division and Balance:

While it is difficult to give an exact definition for the division of space,

it is, however, this proper dividing of space that satisfies an inner sense
of proportion and causes the reader to be pleased with the harmonious
structure of the advertisement.

The division of space leads in to a wide variety of complicated designs

or patterns. However, at present it is more important to consider the
fundamental divisions and their comparative values in order that the
different units (illustration, headlines, copy, trade mark, signature,
and so on) may be placed and divided effectively.

Fig. 21.7 illustrates the various space divisions. Illustration 3 is

divided at the center by a vertical dotted line. Number 2 is divided into
a equal parts by a horizontal line. Both spaces have been cut exactly in
half, leaving two equal divisions for space, This is the least complex
of any possible division.

Such divisions which are equal have a tendency to be uninteresting &

monotonous. Monotony many result from equality or uniformity. Thus, to
avoid monotony, it is usually better not to divide the space into equal
parts.

Illustration 3 & 4 depicts inequality. It illustrate a dramatic, unequal,

interesting situation. These situations are the kind that attract
attention.
Illustration 5 & 6 are similar to 3 & 4 except that each one has divided
into 3 spaces instead of two. These division give dramatic situation which
for attracting interest are probably greater than those found in 3 & 4.

Illustration 7 gives a more complex division of space. None of the four

spaces is equal in area. It broadens even further the possible fields of
activity which enable a layout man to produce greater variety. It has the
advantage of oblongs, both horizontal and vertical. The intersecting
point of the two divisional lines also results in an “X”. This provides
another device for attracting attention.

Illustration 8 provides a space divided into 4 unequal parts, three of

them forming triangles of different sizes. The division is brought about
by two diagonal lines crossing each other, producing the “X”. The
crossing of two opposed diagonal lines is symbolic of crossed swords, and
creates the atmosphere of duels, battle and the like. This dramatic
attraction attracts attention and creates interests.

Illustration 9 in another of the many possible uses of diagonals. This

is similar to illustration 5, but possesses an appeal with greater dynamic
force than straight horizontals. Here one gets the feeling of the power
required to pull something uphill and the effect of costing down at a high
rate of speed.

Illustration 10 portrays a combination of straight and circular lines

bringing about two curved space divisions. Curves create soft fluid
designs, lacking in force and directness when compared to straight lines,
but making up for this deficiency in beauty.

In illustration 11 and 12, the divisional lines are curved. It is the

opinion of many artists that straight lines are masculine in feeling and
curved lines are feminine. Men usually are attracted by advertisements
that go straights to the facts in a logical manner. Beauty in advertising
is not as important to man as it to women.

Women are usually attracted by advertisements that tend toward the

artistic and consider logic and facts as secondary. It should not be
overlooked, however, that curved divisions of space made by straight lines
create a feeling of power, speed and excitement.

(b) Proportion:

Proportion helps develop order and creates a pleasing impression. It is

related to balance but is concerned primarily with the division of space
and the emphasis is to be accorded each element. Proportion, to the
advertising designer, is the relationship between the size of one element
in the ad to another, the amount of space between elements, as well as
the width of the total ad to its depth.

Proportion also involves the tone of the ad, the amount of light area in
relation to dark area and the amount of colour and non colour.

As a general rule unequal dimensions and distances make the most lively
design in advertising. The designer also places the elements on the page
so that each element is given space and position in proportion to its
importance in the total advertisement and does not look like it stands
alone.

(c) Movement:

If an advertisement is to appear dynamic rather than static, it must

contain some movement. Movement (also called sequence) provides the
directional flow for the advertisement, gives it its follow through, and
provides coherence. It guides the reader’s eye from one element to
another and makes sure he does not miss any things.

Motion in layout is generally from left to right and from top to

bottom—the direction established through the reading habits of speakers
of western language. The directional impetus should not disturb the
natural visual flow but should favour the elements to be stressed, while
care should be taken not to direct the reader’s eye out of the
advertisement.

(d) Unity:

Another important design principle is the unification of the layout.

Although an advertisement is made up of many elements, all of these should
be welded into a compact composition. Unity is achieved when the elements
tie into one another by using the same basic shapes, sizes, textures,
colours and mood. In addition, the type should home the same character
as the art.

A border surrounding an ad provides a method of achieving unity. Sets of

borders may occur within an ad, and, when they are similar in thickness
and tone, they provide a sense of unity.
Effective use of white space can help to establish unity, white space is
defined as that part of advertising space which is not occupied by any
other elements; in this definition. White space is not always white in
colour.

White space may be used to feature an important element by setting it off,

or to imply luxury and prestige by preventing a crowded appearance. It
may be used to direct and control the reader’s attention by tying elements
together. If white space is used incorrectly, it may cause separation of
the elements and create difficulty in viewing the advertisement as a
whole.

(e) Emphasis:

Although varying degrees of emphasis may be given to different elements,

one unit should dominate. It is the designer’s responsibility to
determine how much emphasis is necessary, as well as how it is to be
achieved. The important element may be placed in the optical center or
removed from the clutter of other elements. Emphasis may also be achieved
by contrasts in size, shape and colour, or the use of white space.

(f) Clarity and Simplicity:

The good art director does not permit a layout to become too complicated
or tricky. An advertisement should retain its clarity and be easy to read
and easy to understand. The reader tend to see the total image of
advertisement; thus it should not appear fussy, contrived or confusing.

Colour contrasts, including tones of grey, should be strong enough to be

easily interpreted, and the various units should be clear and easy to
understand. Type size and design should be selected for ease of reading,
and lines of type should be a comfortable reading length.

Too many units in an advertisement are distracting; therefore, any

elements that can be eliminated without destroying the message should be
one way in which clarity can be achieved is by combining the logo, trade
mark, tag line, and company name into one compact group.
BRAND MANAGEMENT-
Brand management means management of the tangible and intangible
characteristics of the brand.

In case of product brands, the tangible assets include price packaging,

etc., while the intangible characteristics are emotional attachment,
customer’s experience etc.

Brand management is a function of marketing that uses techniques to

increase the perceived value of a product line or brand over time.
Effective brand management enables the price of products to go up and
builds loyal customers through positive brand associations and images or
a strong awareness of the brand.

Developing a strategic plan to maintain brand equity or gain brand value

requires a comprehensive understanding of the brand, its target market,
and the company's overall vision.

the Coca-Cola jingle "It’s the Real Thing," which first aired in 1971
as a TV commercial that featured people of different races and cultures,
is still branded on the vocal cords of Coca-Cola consumers.

A brand does not only need to be tied to one product. One brand could cover
different products or services. Ford, for example, has multiple auto
models under the Ford brand. Likewise, a brand name can take on multiple
brands under its umbrella.

For example, Procter & Gamble has multiple brands under its brand name,
such as Ariel laundry detergent, Charmin tissue, Bounty paper towels, Dawn
dishwashing liquid, and Crest toothpaste.

BRAND ELEMENTS
Elements that are used to express\represent and identify\differentiate
the brand are called its brand elements.

The brand name, logo, slogan, jingles, packaging style all are
examples of brand elements. The consistent use of brand
elements in all marketing programming helps communicate the
brand character to the market place.
Brand elements have to be-
(a) Memorable- the elements of the brand must be easily
memorable and recognized and recalled.
(b) Meaningful- it must effective enough for the customers
to understand the meaning of the element.
(c) Likable- it must be liked and loved by the customers, it
must create a positive audience.
(d) Rich visual- visual learning is more effective of
learning than any other means thus, rich visual help
to memorize and differentiate between the brands.
(e) Adoptability- the elements must be adoptable according
to the market conditions and can be updated to maintain
memorability.
(f) Verbal Imagery- the elements should be verbally
imaginable and must have optimum use of figure of speech
so as to create the image in the mind of the consumers.
(g) Protectable- it must be legally registered.
(h) Interesting- the brand elements somehow advertise the
brand and it must be interesting enough to create a
demand or desire in the minds of the customers.

Brand Elements are as follows-

1. Brand identity
Let us begin with the very basic. What exactly is a brand and
what is brand identity? The brand of course is an easily
recognizable name that immediately tells people about a certain
organization that manufactures certain products or renders
certain services. Brand identity is the way people recognize
the brand. It may be through the logo or other associated
visuals. The Swoosh logo of Nike is very simple, but is
immediately recognizable worldwide along with its punchline,
“Just Do It”.
2. Brand image
Brand image is the idea of the brand that people develop in their
minds. It also dictates what they expect from the brand. For
instance, Rolls Royce has the image of a luxury car maker. So,
it cannot be making a budget car even if there is a market. Its
existing premium customers won’t take it kindly as it dilutes
the said image. It’s hard and sometimes impossible to change
brand image, so it’s best to know what you’re aiming at,
before you invest hard earned dollars.

3. Brand positioning
Positioning is the way a product is placed in the market. It
basically defines what segments of the market it is targeting.
For instance Virginia Slims is a cigarette targeted at women.
Basic ingredients in all cigarettes are same but this one has
been positioned to attract women by making it slimmer in size
and making the packaging sleeker.

4. Brand personality
Brand personality is just like the personality of human beings.
It is certain emotional or personal qualities that we associate
with a particular brand. For example we can associate
youthfulness with Pepsi or ruggedness with Wrangler. Every
element of the brand identity including the colour of the logo
and the typography on the brand name adds to the personality.

5. Brand equity
Brand equity is the value of a brand. It may include tangible
financial value such as market share and revenue as well as
intangible aspects such as strategic benefits of the brand. For
example Apple is a major technology brand and people perceive
it is a premium, cutting edge manufacturer of quality products.
So, it is not only the sales but the sheer image that takes the
equity to a different level altogether.
branding elements and what they mean for your business

6. Brand experience
Brand experience is a combination of everything that a customer
goes through while purchasing and using that brand. For example
how does one feel while ordering food and eating at KFC? How
does the staff behave and how fast do they deliver and of course
how did the food taste? Also, since it has many outlets all over
the world, all of them are expected to maintain uniform
standards of experience.

7. Brand Differentiation
Differentiation, as the word suggests is how a brand stands out
in the crowd. For instance Dell Computers lets people choose
their components and assemble their own system, thus making it
different from others who just sell readymade machines at the
shop with no scope for customization.

8. Brand communication
Brand communication is the message it delivers through various
sources like adverts, brochures, punchlines and hoardings. If
the brand has to grow, it must be able to clearly communicate
its core benefits to the customers.

9. Brand gap
Brand gap is the difference between what a brand promises to
deliver in its communications and what it actually does. For
its own sake, the gap should not be very high. A successful brand
must be able to deliver what it promises. No amount of
advertising or content marketing efforts can save a bad
product.

10. Brand extension

Brand extension is basically the idea of going beyond ones
origins and exploring newer fields. For example Google started
as a search engine. But now it provides many other services
including emails and mobile operating systems. This is how it
has extended the brand but it must be done in a manner so that
the existing operations complement the newer initiatives.
Google gained market intelligence through its search
operations and this is what enabled it to develop other services.
Films sell merchandise like clothes or toys pre/post release,
which are also extensions as they go beyond the main product
(the film).

BRAND KNOWLEDGE-
Brand knowledge refers to the thoughts, feelings, experiences,
become associated of a customer with a business’s brand or a
company. Brand knowledge is developed due to interactions in
the form of advertisements, communication etc which the company
develops, its logo and has an ambassador for representation but
is truly identified by its consumers only. The consumer will
develop their own interpretation of the company’s brand based
on their thoughts that they go through and what they experience
in dealing with the company along with their feelings about the
company’s products.

Read Next
Brand
Brand Asset Valuator (BAV)
Brand Equity
Brand Extension
Brand Personality
Brand knowledge is the brand image, brand association etc which
a customer creates after the company has created brand
awareness through campaigns. A consumer may develop a poor
brand image if they have a poor experience with the company
let’s say in terms of poor servicing or poor product exposure.

Brand knowledge eventually helps in creating brand equity

through brand recognition.

Brand Knowledge
Importance of Brand Knowledge
A successful brand is one that creates brand knowledge in the
most positive way in their consumer’s minds. Brand knowledge
is a unique combination of brand awareness and brand image.
Brand awareness is how much a customer recalls a brand when it
comes across and advertisement of it. Brand image a pool of
mental imageries that influence a buyer’s purchase decision.
Although different brands may mean differently to people, brand
knowledge is universally a function of awareness and image.

Brand knowledge is a very delicate balance between brand

awareness and brand image. Example- Tiger Woods is a classic
example of high awareness and bad brand image leading to a
disaster of a brand. Brand awareness consists of brand image
and brand recall and is a subset of ad awareness. Brand image
is a lot more challenging, because it is the influences in the
consumers’ mind of both real and imaginary thoughts and
feelings and shortcomings that influence the customer’s
purchase decision.

BRAND IDENTITY-
Brand identity is the visible elements of a brand, such as color,
design, and logo, that identify and distinguish the brand in
consumers' minds. Brand identity is distinct from brand image.
The former corresponds to the intent behind the branding and
the way a company does the following—all with the goal of
cultivating a certain image in consumers' minds:

Chooses its name

Designs its logo
Uses colors, shapes, and other visual elements in its products
and promotions
Crafts the language in its advertisements
Trains employees to interact with customers

Brand image is the actual result of these efforts, successful

or unsuccessful.
Understanding Brand Identity
Apple Inc. consistently tops surveys of the most effective and
beloved brands because it has successfully created the
impression that its products are sleek, innovative,
top-of-the-line status symbols, and yet eminently useful at the
same time. Apple's brand identity and brand image are closely
aligned.
https://99designs.com/blog/tips/brand-identity/#brandidentity

https://www.thebalancesmb.com/brand-identity-and-marketing-2295442
https://www.marketingtutor.net/brand-identity-definition-elements/

BRAND PERSONALITY
Brand personality is the way a brand speaks and behaves. It means assigning human
personality traits/characteristics to a brand so as to achieve differentiation. These
characteristics signify brand behaviour through both individuals representing the brand (i.e. it’s
employees) as well as through advertising, packaging, etc. When brand image or brand identity
is expressed in terms of human traits, it is called brand personality. For instance - Allen
Solley brand speaks the personality and makes the individual who wears it stand apart from
the crowd. Infosys represents uniqueness, value, and intellectualism.

Brand personality is nothing but personification of brand. A brand is expressed either as a

personality who embodies these personality traits (For instance - Shahrukh Khan and Airtel,
John Abraham and Castrol) or distinct personality traits (For instance - Dove as honest,
feminist and optimist; Hewlett Packard brand represents accomplishment, competency and
influence). Brand personality is the result of all the consumer’s experiences with the brand. It is
unique and long lasting.

Brand personality must be differentiated from brand image, in sense that, while brand
image denote the tangible (physical and functional) benefits and attributes of a brand, brand
personality indicates emotional associations of the brand. If brand image is comprehensive
brand according to consumers’ opinion, brand personality is that aspect of comprehensive
brand which generates it’s emotional character and associations in consumers’ mind.
Brand personality develops brand equity. It sets the brand attitude. It is a key input into the look
and feel of any communication or marketing activity by the brand. It helps in gaining thorough
knowledge of customers feelings about the brand. Brand personality differentiates among
brands specifically when they are alike in many attributes. For instance - Sony versus
Panasonic. Brand personality is used to make the brand strategy lively, i.e, to implement brand
strategy. Brand personality indicates the kind of relationship a customer has with the brand. It is
a means by which a customer communicates his own identity.

Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures
immediate awareness, acceptability and optimism towards the brand. This will influence
consumers’ purchase decision and also create brand loyalty. For instance - Bollywood actress
Priyanka Chopra is brand ambassador for J.Hampstead, international line of premium shirts.

Brand personality not only includes the personality features/characteristics, but also the
demographic features like age, gender or class and psychographic features. Personality traits
are what the brand exists for.
BRAND ASSOCIATION-
Brand Associations are not benefits, but are images and symbols associated with a brand or a
brand benefit. For example- The Nike Swoosh, Nokia sound, Film Stars as with “Lux”, signature
tune Ting-ting-ta-ding with Britannia, Blue colour with Pepsi, etc. Associations are not
“reasons-to-buy” but provide acquaintance and differentiation that’s not replicable. It is relating
perceived qualities of a brand to a known entity. For instance- Hyatt Hotel is associated with
luxury and comfort; BMW is associated with sophistication, fun driving, and superior
engineering. Most popular brand associations are with the owners of brand, such as - Bill Gates
and Microsoft, Reliance and Dhirubhai Ambani.

Brand association is anything which is deep seated in customer’s mind about the
brand. Brand should be associated with something positive so that the customers relate your
brand to being positive. Brand associations are the attributes of brand which come into
consumers mind when the brand is talked about. It is related with the implicit and explicit
meanings which a consumer relates/associates with a specific brand name. Brand association
can also be defined as the degree to which a specific product/service is recognized within it’s
product/service class/category. While choosing a brand name, it is essential that the name
chosen should reinforce an important attribute or benefit association that forms it’s product
positioning. For instance - Power book.

Brand associations are formed on the following basis:

 Customers contact with the organization and it’s employees;

 Advertisements;
 Word of mouth publicity;
 Price at which the brand is sold;
 Celebrity/big entity association;
 Quality of the product;
 Products and schemes offered by competitors;
 Product class/category to which the brand belongs;
 POP ( Point of purchase) displays; etc

Positive brand associations are developed if the product which the brand depicts is durable,
marketable and desirable. The customers must be persuaded that the brand possess the
features and attributes satisfying their needs. This will lead to customers having a positive
impression about the product. Positive brand association helps an organization to gain
goodwill, and obstructs the competitor’s entry into the market.

The associations developed by top brands.

Examples of brand associations are:

 Downy is soft
 Tesla is electric
 Coca-Cola is classic
 BMW is driving performance
 Apple is simple
 ZARA is fashionable
https://brandmarketingblog.com/articles/branding-definitions/brand-association/
BRAND ARCHITECTURE-

Brand Architecture is a system that organizes brands, products

and services to help an audience access and relate to a brand.
A successful Brand Architecture enables consumers to form
opinions and preferences for an entire family of brands by
interacting or learning about only one brand in that family.

An established Brand Architecture is an important guide for

brand extensions, sub-brands and development of new products.
It will also provide a road map for Brand Identity development
and design, and remind consumers of the value proposition for
the entire brand family. It also provides the maximum brand
value by fully leveraging both corporate and sub brands.

Like most marketing topics, I could write on a book on this.

As such, I’ve left out some nuance, but I’ve tried to provide
enough information to be a useful jumping off point.
Here are some short definitions for key concepts to get us
started:
Master brand: A top-level corporate brand that encapsulates
other branded products and services.

Brand extension: a product or service launched by a known brand

name, where the extension is in a different category than the
brand’s other products or services.

Below are the three most common types of Brand Architecture:

Branded House – This offers a very logical path to brand
extensions and new brands. In a branded house, the master
brand is always present and is easily linked to and leveraged
by extensions. A good example is FedEx. FedEx Kinko’s provides
very different (but complimentary) services than the master
FedEx brand, but is easily linked back to FedEx, and therefore
shares its credibility.

House of Brands – This insulates and protects the master brand

from brand extensions and in turn protects brands from each
other. A house of brands also allows for a Master Brand to have
competing brands in the same segments. A good example is
Proctor and Gamble. If Crest, for instance, had some kind of
brand crisis, none of the other brands would be affected.

Hybrid or Endorsing Brand – This is a more flexible way to

package brands under a master brand. Brand extensions are given
separate identities and are associated with the master brand,
or not, depending on the context. This gives you the freedom
to have independent strategies for the brand extensions, but
to also use the equity of the master brand when it’s convenient.
A good example is Toyota with the Lexus and Scion brands.

The Endorsed Brand

Marriott is an example of a hybrid brand structure where some
brand extensions feature the parent name, while others do not.
This format provides flexibility in naming and brand building.
However, some consumers may be unaware of the connection
between the master brand and companies that carry a different
name (between Marriott and Sheraton, for example).

marriott brand architecture

In recent years, many companies have been moving toward a

strategy of emphasizing their corporate brand name over
individual products. While the efficiency of this approach can
be appealing, it doesn’t prioritize customer segmentation,
Harvard Business Review notes.

Choosing which one of these types of brand architecture is right

for your company involves considering factors such as your
current architecture, your marketing goals, your current
product/services mix, and new products in your pipeline. You
also need to take into account the experience of your customers.
For example, your print materials might clearly describe your
solutions, while your website might be a maze to navigate.
(That’s something that can be evaluated with platforms like
Google Analytics.)

Moving to a new type of brand architecture isn’t something to

be taken lightly, as it can involve everything from a new
messaging strategy to redirecting legacy websites. However,
the benefits of building a consistent architecture are
considerable.

Benefits of a consistent brand architecture

Let’s imagine that your company has performed a number of
acquisitions over the years, and that those acquired companies
don’t necessarily have the same brand personality as the
parent organization. This can translate into any number of
issues for customers. For example, when the customer clicks on
a specific solution on your website, they might be taken to a
different web domain that looks and feels quite different,
which is confusing—they might even think the link is broken,
or that they accidentally clicked on an ad. Or a prospect might
bounce from your site because the hierarchy of information
isn’t intuitive.

Acquisitions can be a very emotional process. Often, the

acquiring company goes out of its way to make the new company
feel welcome; while this isn’t necessarily a bad thing, in some
cases the acquired company never gets fully consolidated and
ends up operating as a sort of rogue unit with a brand that
sticks out like a sore thumb.
So what are the benefits of a stronger type of brand
architecture and unified brand? These are just for starters:

Gain clarity in the marketplace

Instead of a portfolio of companies that look and sound
different, you’re able to emphasize their connection through
a consistent visual and verbal identity. Better yet, that
clarity can increase the confidence of your board of directors,
VCs, and other stakeholders.

Grab attention with a bold story

Every company has a story to tell, but sometimes the compelling
aspects of that story are buried. Consolidating your brand
gives you the opportunity to tell why you’ve built your
company—what unites you, what unique capabilities you’ve
developed, and why you came together the way you did. Telling
that story the right way will require research, synthesis, a
communications strategy, and creative execution.

Grow revenue through cross-selling

When you clearly articulate your story, you’re able to express
the full value of your combined solutions—how they complement
each other. That makes it easier to cross-sell across business
units.

Create a more inclusive culture

A compelling unified story can serve as a rallying cry for all
your employees, one that makes everyone in various business
units and locations feel like they’re all fighting for the same
cause. That’s why it’s important to plan the internal launch
when you’re working on a new brand: to create an authentic buzz
before the external launch.

Considerations for a brand consolidation

Consolidating brands isn’t something that can be done
overnight. It takes sustained effort involving research,
synthesis, strategy, and execution. This can involve:

Customer/prospect interviews to tell you what they value and

how they view the market and your company
A discovery session and internal interviews to discern what
executives, subject matter experts, or other key stakeholders
think you should be saying
A communications audit to determine how you’re currently
communicating to the marketplace
Competitor research to understand the brand structure of your
competitors and how they’re communicating
Creation of strategies for communications, as well as the
internal and external brand launches
The case for hiring a neutral party
In many cases, a marketing agency can bring great value to a
brand consolidation project. They can serve as an impartial
observer who asks important questions and makes strategic
recommendations without any office politics getting in the way.
Also, your organization doesn’t go through a major branding
project very often, while an agency that specializes in
branding does numerous such projects each year, so they can
bring a great deal of relevant experience.
Element Three has performed numerous branding projects over the
years across different industries. Check out our branding
services if you’re in need of experienced brand architects.
Also, you’ll want to access our new Brand Development
Collection—the best content that we’ve produced about
branding over the last five years.

An expert partner can provide you with different brand

architecture examples that have seen success in your industry
and situation. They can do the digging to figure out which of
the types of brand architecture best fits your needs, and help
guide you down the right path. This way, no matter how it ends
up being structured, you can be sure that there will be
consistency across your brand—or brands

Managing Brand Architecture

In developing and managing brand architecture strategy, there are at least four
key components to consider: 1) brand architecture audit; 2) brand architecture
principles; 3) brand architecture models alternatives; and 4) the brand naming
decision tree. In our experience, many organizations place too much
emphasis, too early, on brand architecture models and frameworks without
first auditing their existing architecture and then defining the brand architecture
principles that underlie the various frameworks. Here is a brief overview of
each major component:

Brand Architecture Audit

A brand architecture audit is a necessary starting point to define the “as is” or
current state of your organization’s brand architecture. Depending upon the
size and complexity of your organization, this can be a fairly simple or very
elaborate exercise. The brand architecture audit should focus on two key
areas: business performance and brand structure.

 Business performance involves assessing the performance of the various products

and brands within the brand portfolio, in terms of sales, profits and growth
potential. Which brands and products contribute the most to your business today and
in the future?

 Brand structure involves understanding — from the eyes of your customer — how
they experience the current brands and product today, across all the various brand
 touchpoints. This involves auditing and then visually representing how customers
experience your brand — including logos, website, advertising, collateral material,
at-retail, etc. Practically speaking, this can be done in a conference room or using a
brand touchpoints wheel. Is the brand architecture visual depiction clear, consistent
and logical or do opportunities exist to improve the structure?

Once you complete the “as is” assessment step, it’s time to consider and
develop a set of brand architecture principles to guide strategic
decision-making.

Brand Architecture Principles

Brand architecture principle development should serve as the foundation for

developing alternative brand architecture frameworks. This is a critically
important, though often overlooked step, in developing a clear, consistent
brand architecture. As questions arise in managing brand architecture —
should we add a brand, delete a brand, establish a brand-driver relationship —
it’s necessary to have a set of principles to guide
decision-making. Importantly, brand architecture principles development
should precede brand architecture examples and alternatives
development. Before you consider whether a “house of brands” or a “branded
house” is the right approach, you need to establish a set of criteria, specific to
your organization, to guide development.

Here is a sample:

Sample Brand Architecture Principles

 Identify and invest in the fewest number of brands needed to meet business
goals. Today, that is Brands A, B and C
 Create new brand(s) only when a business case (including target customer insight)
has been proven and necessary multi-year support has been confirmed
 Minimize the proliferation of sub-brands by using endorsed brands, product
extensions or product descriptors
 Maximize understanding and minimize confusion by using descriptive or generic terms
for product extensions or product descriptors

The above principles would tend to favor a more streamlined brand

architecture (with fewer, stronger brands). Another set of principles may call
for a greater number of brands. The key point however, is that brand
architecture principles should be established before brand architecture
alternatives development, considering the brand architecture
strategy factors discussed prior.

Brand Architecture Framework Alternatives

Once the brand architecture audit and principles have been defined, it’s time to
develop alternative architecture models and frameworks. This is where you
consider the “boxes and sticks” approach to brand architecture across a
variety of brand architecture examples. What alternatives exist for
determining the strategic, relational structure for all products and brands in the
portfolio? Again, depending upon the size and complexity of your
organization, an almost limitless number of options may exist. Therefore, at
least initially, our brand consultants and clients will develop and draw on
a brand architecture template to jointly develop a limited set — typically
three to five alternatives — that are strategically sound and distinctively
different from each other.

Brand Naming Decision Tree

Once the brand architecture has been established, it’s useful to develop a
brand name decision tree to “test” the effectiveness of the architecture under
different scenarios. So, for example, if a new product is developed within a
particular product group, how should it be branded and named? Does it fall
under the master brand or is a new brand warranted? Ultimately, a decision
tree needs to be published and disseminated throughout the organization to
ensure consistency over time. More information about brand naming is
contained here. Brand identity guidelines should also be developed regarding
creative treatment.

Brand Portfolio
Definition: The Brand Portfolio refers to an umbrella under
which all the brands or brand lines of a particular firm
functions to serve the needs of different market segments. In
simple words, brand portfolio encompasses all the brands
offered by a single firm for sale to cater the needs of different
groups of people.

Brand portfolio is generally created because each brand has

certain boundary beyond which it cannot fulfill all the needs
of different market segments.
The advantage of having the Brand Portfolio is that management
can keep a check on all the brands as a whole and frame the
policies with a broader perspective. Also, the resources can
be allocated to the brand that needs the most.

The brands in the Brand Portfolio play the following different

roles:

Flanker Brand: A Flanker Brand also known as a Fighter Brand

is a new product launched in a market by the company in the same
category wherein an established brand is already positioned.
This is primarily done for the increased market share as well
as to cater to the need of all the segments of customers.e.g.
Armani’s brand portfolio is one of the best examples to explain
the concept of a flanker brand. In it, the brands are
distinguished on the basis of price and customer segment.armani
example final
Cash Cow Brand: A cash cow brand is that product in the brand
portfolio that has reached the maturity level in the product
life cycle but is able to bring in profits necessary for its
survival. These brands are not removed from the market because
necessary cash is flowing in through its sale which is better
than incurring heavy cost on the launch of a new product.E.g.
The best example of cash cow brand is Gillette Company that is
keeping the old brands viz. Gillette Atra, Gillette sensor and
Gillette Trac II in its brand portfolio despite new razor
technology such as Mach III turbo and Gillette Fusion.gillette
example
Low-End Entry Level Brand: A low Entry Brand in a brand
portfolio includes the product which is offered at less price.
The low priced product is added to the portfolio to ensure the
purchase at least once and bring the customer into the brand
family.
Once the customer becomes a part of the family, he is then
persuaded for the purchase of the higher priced product in near
future.E.g. Hero MotoCorp explains this concept very
accurately wherein low priced bikes viz. CD Dawn, Platina, CD
Deluxe are added in the brand portfolio to gain the customer
base along with the high priced bikes such as Karizma, Ignitor,
Impulse, Achiever, etc.hero example

High-End Prestige Brand: A High-End Prestige Brand in the brand

portfolio is the product offered at a high price with the
intention of creating a sense of prestige in the minds of
customers. Other brands in the portfolio also get the
recognition because of the premium brand and its quality do have
a halo effect on each product line.E.g. Tata is the best example
to elucidate high-end prestige branding.tata example
Thus, a firm tries to have all the different brands operating
independently under its periphery to protect the sources of
equity by not letting customers move away due to the
unavailability of their desired product.
MANAGEMENT OF BRAND PORTFOLIO-
https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/making-brand-portf
olios-work

Managing the portfolio

Getting strategy right is only part of the battle; companies
must also make organizational changes if they are to adapt their
brand portfolios quickly to shifting trends, competitive
responses, mergers, and new-product launches while also
managing the natural life cycle of their brands. Since taking
action with one often means doing so with another, companies
must appoint a dynamic portfolio manager who can ensure that
the whole portfolio moves nimbly.
How can a company centralize this kind of authority without
handcuffing the managers of its individual brands? That depends
largely on how it constitutes the portfolio manager's role. The
crucial thing is that the person who holds it must have the
ability to determine, on an ongoing basis, how well individual
brands are fulfilling their part in the portfolio strategy and
whether the strategy itself still makes sense. The portfolio
manager must, of course, have certain traits and skills. But
much will also be required of the organization, including unity
of purpose across functions and businesses and robust metrics
for tracking performance.

Structural options
To articulate and monitor a brand-portfolio strategy, the
portfolio manager must have the authority, the marketing skills,
the facts, and the analyses to sway the brand managers.
Sometimes the chief marketing officer, the vice president for
marketing, or a person who rose through the ranks of the
marketing organization and then became general manager of a
business unit can serve as portfolio manager while still
carrying out his or her primary duties. The support team might
consist primarily of "swing" analysts who have some
responsibility for individual brands but can be called up by
the portfolio manager for major events, such as a new-product
launch or the acquisition of several brands. At the extreme,
brand teams might have a fluid membership.

In other cases—particularly in industries characterized by

rapidly changing tastes (fashion), many sub-brands (autos), or
rapid consolidation—a full-time portfolio-management
structure may be warranted. One global automobile manufacturer
relies on a central organization to coordinate its brand
strategy. Pricing is one key area of focus because although each
of the portfolio's car lines has a specific role that its list
price reflects, differences in base features and functions make
apples-to-apples comparisons difficult. The central team gets
around this problem by creating "virtual" cars with identical
features across brands, setting the value of each brand
according to its role in the portfolio, and then building in
or stripping out standard features to arrive at real pricing.

Essential tasks
Whatever structure a company selects, it is vital for the
portfolio manager to channel the entrepreneurial energies of
the brand managers in the right direction and, when necessary,
to make them trim their sails or change course.

Building agreement. The portfolio manager must get individual

brand groups to endorse the portfolio strategy formally.
Incentives that reward them for the whole portfolio's
performance help to ensure that they don't revise their brands'
strategies when no one is watching.

Meanwhile, the portfolio manager should reconcile the

portfolio strategy with functional agendas elsewhere in the
company. It might, for example, be necessary to set up focused
R&D initiatives to fill gaps in the brand portfolio, to work
with the finance organization to include key brand metrics in
annual and long-range plans, and to have the sales organization
develop a calendar and resource-allocation guidelines. The
calendar would be linked to key dates in the strategy's rollout,
and the guidelines would include directions for presenting
brands to intermediaries such as grocery stores or car dealers.
Tracking progress. Measuring whether each brand is fulfilling
its role in the portfolio is crucial. Standard metrics show
whether consumers know about, have tried, or ever considered
purchasing a brand; their attitudes toward it (for instance,
is it "worth paying more for?"); rates for converting prospects
into customers and for retaining customers in target segments;
and levels of customer satisfaction. Other metrics should be
tailored to the strategic goals for each brand. If the managers
of several brands in the same portfolio track identical metrics,
the company often has a problem: either the metrics are at too
high a level to shed light on the relative performance of
different brands, or the brands are positioned so closely
together that the strategy needs a rethink.

An appliance maker introducing a new, lower-priced line to its

portfolio, for example, found it helpful to track product-mix
changes by sales channels. It discovered that in some of them,
its existing premium products were positioned close to the new
line, a problem that leads to cannibalization and falling
margins. This timely channel data prompted the company to stop
the bleeding quickly. Well-conceived metrics also clarify
major competitive moves. In the value end of the appliance
industry, for instance, LG Electronics and Samsung have made
advances that are prompting several other manufacturers to
rethink the role of value offerings in their own portfolios.

Although the annual planning process is a natural time for such

dialogues, brand managers should raise red flags whenever these
issues appear, particularly if the portfolio manager's likely
response to them includes adding a brand. When market
researchers recognize a new consumer trend, the portfolio
manager must get involved to avoid a familiar outcome: a number
of similar products for similar customers and need states.
Marketers are uneasy about rigorous brand-portfolio management,
but overcoming this mind-set can pay big dividends. For
companies that succeed, setting the portfolio strategy isn't
a onetime event; it's a living, breathing part of day-to-day
business.

CORPORATE BRANDING-

Corporate Branding is an act of using the brand name of the

company in the overall advertising efforts and all the
communication to the stakeholders. It is the intangible
attitude and spirit behind the company that gives it a
distinguishing identity in the industry and in the minds of
consumers. It is the much broader concept as compared to
promoting the products and services of the company.

Page Contents
Advantages of Corporate Branding:
Corporate Branding - 1

It provides a competitive advantage to the company whilst

selling its products and services in the market as the consumers
are well aware of the company due to its strong corporate
identity and brand name.
It facilitates new product launches and is well accepted in the
market due to the strong corporate legacy created with the
previous or existing line of the products and services offered
by the company.
It helps the company to tap and enter new markets and locations
on the domestic and international level as the corporate entity
has already created repute for itself with the corporate
branding efforts.
There is an emotional connection with the existing and
prospective consumers as it arises a feeling of brand loyalty
in their minds.
It makes the marketing and promotional efforts easier as with
the Corporate Branding well in place, the consumers have the
factor of trust towards the product and service offerings by
the company.
There is an increased awareness about the company and its
offerings with the consumers identifying the logo, mascots,
color shades, tagline, and other brand elements having the
top-of-the-mind recall about all the expressions of the brand.
The framework of Corporate Branding:
As mentioned earlier, the facets of Corporate Branding are
quite different from the product branding as the latter strives
hard on the selling points and generating profits for the
company whereas the former enlightens the market and the target
audience about the existence of the brand, values, fundamentals,
unique selling proposition, aim and purpose to be in the
industry, and very importantly how is it different from the
other brand existing in the market.

It starts with the management and the key staff members together
understanding the nature of the brand, business philosophies,
long-term and short-term objectives, and the target audience
along with the market to promote the brand and the products and
services.
The next step is deciding on the way to position the brand in
the market and in the psychology of the consumers and that can
be arrived by understanding and finalizing that in which
category does the operations and product range falls, is it
luxury, mid-segment or affordable and then the brand
positioning is decided.
Next comes in line are the vision and mission statements of the
brand that holds quite an important place in the framework of
Corporate Branding.
Then comes working on the creative elements such as logo,
tagline, mascot, color palette, and design templates.
Many companies also hire a brand ambassador such as a famous
sportsperson, movie star, or a celebrity from any walk of life
complementing the nature of the brand and its offerings.
Once the aforementioned points are in place, it is the time to
execute the Corporate Branding strategies by sponsoring and
participating in various events on the corporate level that
give the due visibility of the brand to the target audience and
carving a niche in the market.
Related: Why Sunny leone is rising as a brand ambassador
Below we discuss some Examples of Corporate Branding :
1) Apple
Corporate Branding - 2

The technology giant famous for offering gadgets ranging from

mobile phones, tablets, laptops, computer systems, televisions,
and more is not only renowned in the USA but has made an impact
all over the globe with the products that are high on quality,
class, and technology. Its brand logo is quite creative and
catchy and as its target audience is niche and the luxury
segment, the design elements are minimalistic in nature with
solid color tones having a classy finesse. Even its print,
digital, and television advertisements follow the same design
route with the clear visibility of the logo.

The products of the company can be identified even from the far
sight owing to the strong measures taken by the company to build
the Corporate Branding.

2) Nike
Corporate Branding - 5

The popular sports brand is quite a hit number with not only
the sports personalities and celebrities around the world but
also with the common man as well. Its mission statement reads,
“To bring inspiration and innovation to every athlete in the
world. “ The co-founder once said in its speech, “If you have
a body, you are an athlete.” Making it very clear to the entire
world that the brand is just not confined to the sportsmen’s
but also to everyone having a zeal for sports and fitness.

Its logo encompasses of a single right tick with the slogan

‘Just Do It’ is quite sporty and direct in nature ensuring
quick registration and a strong recall factor. The company has
made a strong corporate base by sponsoring various sports and
related events.

3) Coca-Cola
Corporate Branding - 3
We all know that sodas are not very good for our health and
vitality but the beverage major Coca-Cola is one of the most
loved and profitable brands across the world since more than
hundred years now. Right from mineral water, fruit drinks,
aerated drinks, energy drinks to zero-calorie drinks; it has
something or the other in store for everyone with the cola drink
being the most famous amongst the target audience. Its slogan
is ‘Taste the Feeling’ as it harps on the fact that drinking
coco cola gives the feeling of freshness with the renewed vigor
and vitality. It keeps on hiring celebrities from the various
walks of life as its brand ambassadors to have an emotional
connection with the target audience that is majorly young
generation under the age bracket of 15 to 35 years.

Related: 7 ways to improve brand communication

The term and concept of Corporate Branding are much more than
the catchy logo and aesthetic design templates and harps on
every expression of the brand such as customer service levels
and unique selling propositions that can be quality,
affordability, delivery timelines, and other depending on the
fundamentals and objectives of the organization.

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Step 1: Perform a brand audit.

Step 2: Determine your brand’s promise – the who, what, why,
and for.
Step 3: Get everyone on board. I mean, everyone.
Step 4: Make your brand come alive.
Step 5: Develop guidelines for implementing the brand – and
‘enforcing’ it when needed.
BRAND EQUITY-

What Is Brand Equity?

Brand equity refers to a value premium that a company generates
from a product with a recognizable name when compared to a
generic equivalent. Companies can create brand equity for their
products by making them memorable, easily recognizable, and
superior in quality and reliability. Mass marketing campaigns
also help to create brand equity.

When a company has positive brand equity, customers willingly

pay a high price for its products, even though they could get
the same thing from a competitor for less. Customers, in effect,
pay a price premium to do business with a firm they know and
admire. Because the company with brand equity does not incur
a higher expense than its competitors to produce the product
and bring it to market, the difference in price goes to margin.
The firm's brand equity enables it to make a bigger profit on
each sale.

[Important: Brand equity is an extension of brand recognition,

but more-so than recognition, brand equity is the added value
in a particular name.]

1:13
Brand Equity
Understanding Brand Equity
Brand equity has three basic components: consumer perception,
negative or positive effects, and the resulting value. Foremost,
consumer perception, which includes both knowledge and
experience with a brand and its products, builds brand equity.
The perception that a consumer segment holds about a brand
directly results in either positive or negative effects. If the
brand equity is positive, the organization, its products, and
its financials can benefit. If the brand equity is negative,
the opposite is true.

Finally, these effects can turn into either tangible or

intangible value. If the effect is positive, tangible value is
realized as increases in revenue or profits and intangible
value is realized as marketing as awareness or goodwill. If the
effects are negative, the tangible or intangible value is also
negative. For example, if consumers are willing to pay more for
a generic product than for a branded one, the brand is said to
have negative brand equity. This might happen if a company has
a major product recall or causes a widely publicized
environmental disaster.

Effect on Profit Margins

When customers attach a level of quality or prestige to a brand,

they perceive that brand's products as being worth more than
products made by competitors, so they are willing to pay more.
In effect, the market bears higher prices for brands that have
high levels of brand equity. The cost of manufacturing a golf
shirt and bringing it to market is not higher, at least to a
significant degree, for Lacoste than it is for a less reputable
brand.

However, because its customers are willing to pay more, it can

charge a higher price for that shirt, with the difference going
to profit. Positive brand equity increases profit margin per
customer because it allows a company to charge more for a
product than competitors, even though it was obtained at the
same price.

Brand equity has a direct effect on sales volume because

consumers gravitate toward products with great reputations.
For example, when Apple releases a new product, customers line
up around the block to buy it even though it is usually priced
higher than similar products from competitors. One of the
primary reasons why Apple's products sell in such large numbers
is that the company has amassed a staggering amount of positive
brand equity. Because a certain percentage of a company's costs
to sell products are fixed, higher sales volumes translate to
greater profit margins.

Customer retention is the third area in which brand equity

affects profit margins. Returning to the Apple example, most
of the company's customers do not own only one Apple product;
they own several, and they eagerly anticipate the next one's
release. Apple's customer base is fiercely loyal, sometimes
bordering on evangelical. Apple enjoys high customer retention,
another result of its brand equity. Retaining existing
customers increases profit margins by lowering the amount a
business has to spend on marketing to achieve the same sales
volume. It costs less to retain an existing customer than to
acquire a new one.
Key Takeaways
Brand equity refers to a value premium that a company generates
from a product with a recognizable name when compared to a
generic equivalent.
Brand equity has three basic components: consumer perception,
negative or positive effects, and the resulting value.
Often, companies in the same industry or sector compete on brand
equity.
Examples of Brand Equity
A general example of a situation where brand equity is important
is when a company wants to expand its product line. If the
brand's equity is positive, the company can increase the
likelihood that customers might buy its new product by
associating the new product with an existing, successful brand.
For example, if Campbell's releases a new soup, the company is
likely to keep it under the same brand name rather than
inventing a new brand. The positive associations that customers
already have with Campbell's make the new product more enticing
than if the soup has an unfamiliar brand name.

Here are some other examples of brand equity: Manufactured

since 1955 by McNeil (now a subsidiary of Johnson & Johnson),
Tylenol ranks above average in the pain relief category,
according to the Mayo Clinic. EquiTrend studies show that
consumers trust Tylenol over generic brands. Tylenol has been
able to grow its market with the creations of Tylenol Extra
Strength, Tylenol Cold & Flu, and Tylenol Sinus Congestion &
Pain.
Since 2009, the Kirkland Signature brand by Costco has
maintained positive growth. Signature encompasses hundreds of
items, including clothing, coffee, laundry detergent and food
and beverages (one study shows that Costco sells more wine than
any other brand in the country, despite state laws that restrict
it from selling alcohol in certain areas). Costco even provides
members with exclusive access to cheaper gasoline at its
private gas stations. Adding to Kirkland's popularity is the
fact that its products cost less than other name brands.
According to a Starbucks consumer case study, customers choose
its brand of coffee over others both because of its quality and
because of the company. Rated the fifth-most-admired company
in the world by Fortune magazine in 2014. Starbucks is held in
high regard for its pledge to social responsibility. With more
than 28,000 stores around the globe in 2018, Starbucks remains
the largest roaster and retailer of Arabica coffee beans and
specialty coffees.
With a brand value in the ballpark of $57.3 billion in 2018,
Coca-Cola is often rated the best soda brand in the world.
However, the brand itself represents more than just the
products—it's symbolic of positive experiences, a proud
history, even the U.S. itself. Also recognized for its unique
marketing campaigns, the Coca-Cola corporation has made a
global impact on its consumer engagement.
Porsche, a brand with strong equity in the automobile sector,
retains its image and reliability through the use of
high-quality, unique materials. Viewed as a luxury brand,
Porsche provides owners of its vehicles not only with a product
but an experience. In comparison to other vehicle brands in its
class, Porsche was the top luxury brand in 2019, according to
U.S. News & World Report.
LEVERAGING BRAND EQUITY-
Brand leveraging is the strategy to use the power of an existing
brand name to support a company’s entry into a new but related
product category by communicating valuable product information
to the consumer.
Importance of Brand Leveraging
Brand leveraging is an important form of new product
introduction because −
Strong brand leveraging provides consumers with a sense of
familiarity.
It carries positive brand characteristics and attitudes into
a new product category.
Strong leveraging perceives instant recognition to the brand.
Consumers are more likely to try leveraged product.
As the products belong to the different categories, they do not
compete for market share.
More products mean greater shelf space for the brand and in turn
more opportunities for sale.
The cost of introducing a brand-leveraged product is less than
introducing an independent new product.
A full line permits coordination of product offerings, such as
bagels and cream cheese, potato chips and ranch dip, peanut
butter and jelly, etc.
A greater number of products increase efficiency of
manufacturing facilities and raw materials.
Role of Brand Managers in Brand Leveraging
The brand managers can create a strong brand leveraging, by
maintaining the quality of all products in different categories
under the brand.
The brand managers need to decide which products can be
leveraged under a brand. It is very important for them to
leverage a brand only into related or associated categories of
the original product.
In order to make the best decision for the brand, they need to
find answers for the following questions −
Is the new product related to the established product family?
Does the established brand has characteristics that can be
effectively carried on into new categories?
What will be the appropriate leveraging strategy?
What will be the impact on original brand name? Will it be
strengthened or diluted?
Does the company have essential facilities to manufacture and
distribute a new and differentiated product?
Will sales of the new product cover the cost of product
development and marketing?
If leveraging fails, what are the policies to revert or to keep
original brand’s reputation?
A brand leveraging strategy can be extremely successful and
profitable if it is correctly implemented and provides new
products with the right image.
Brand Extension:
Brand extension is the use of an established brand name in new
product categories. The category to which the brand is being
extended can be related or unrelated to the existing product
Brand extension in unrelated markets may result in loss of
credibility if a brand name is extended too far. A company has
to find out the product categories in which the established
brand name will work and the product categories in which it will
not work.

To be able to do that, the company has to find as to why the

brand name is successful in its current business. It may find
out that customers in the current business desire luxury and
exclusivity, and the brand is correctly positioned. It is
offering luxury and exclusivity.
If the customers of the new business also desire luxury and
exclusivity, the brand name will work in the new business. If
values and aspirations of the customers of the new business
match those of the original business and if these values and
aspirations are embodied in the brand, it is likely to be
accepted by customers in the new business.

Advantages of brand extensions in releasing new products are

that it reduces risk and is less costly than alternative launch
strategies. Customers appear to attribute the quality
associations they have of the original brand to the new product.
An established name enhances consumer interest and willingness
to try the new product bearing the established brand name. Since
the established brand is already well known, the task of
building awareness for the new product is eased.

Advertising, selling and promotional costs are reduced. There

is likelihood of achieving advertising economies of scale since
advertisements for the original brand and its extensions
reinforce each other.
But brand extensions that offer no functional, psychological
or price advantage over rival brands in the new category often
fail. There is also the danger that management may not provide
enough funds for the launch believing that the spin-off effects
from the original brand name will compensate.

This can lead to low awareness and trial. Also, bad publicity
for one product affects reputation of other products under the
same name. A related problem is the danger of the new product
failing or generating connotations that damage the reputation
of the core brand.
A major test of any brand extension opportunity is to ask if
the new brand concept is compatible with the values inherent
in the core brand. Brand extension is not viable when the new
brand is developed for target customers who hold different
values and aspirations from those in the original market
segment.

Line Extension:
New variants such as new product formulations, flavours, SKUs
(sizes), models or colours within the same product category are
launched bearing the established brand name.

Line extensions can be useful to reach out to new customer

segments who seek new benefits, hitherto not being offered by
the brand in the category.
For instance, launching a new shampoo variant aimed at
consumers seeking solution for a dry, itchy scalp under the
existing shampoo brand name makes sense. Line extensions are
also useful in reviving consumer interest in a dull product
category. In some categories, variety is a desirable attribute
for consumers.

However, line extension leads to managerial focus on minor

modifications, packaging changes and advertising rather than
on real innovations. Cannibalization can also occur, i.e., the
new brand variants gains sales at the expense of the established
variants of the same brand.

Brand Stretching or Vertical Extensions:

The company may sense an opportunity in the premium or/and value
segments of the market, besides its existing markets. The
company enters into these premium or/and value segments as well.
These movements are called up scaling and downscaling
respectively.
Companies engage in brand stretching because:

i. Existing markets may be saturated

ii. They sense new opportunities in the premium or popular
segments of the market
iii. Competition in the existing segments is intense

Brand stretching strategy can be practised in three ways:

i. Up-scaling or downscaling the entire brand.
ii. Introducing a totally new brand in the up-scaled or
downscaled position.
Both the above techniques represent extremes. Almost all
companies tread the middle path.
iii. Treat the original brand as the ‘Mother Brand’ and
introduce its offshoots in the form of ‘sub-brands’. These
sub-brands can either be added as:
(a) Prefixes or suffixes.
(b) Describe the caliber of the stretched brand by using
appropriate numbers/symbols/text abbreviation/ words/names.

When up-scaling is done using existing brands, it might not be

successful as customers in the premium segments may not accept
the brand that was present in the popular segment earlier.
Though up-scaling an existing brand may not necessarily fail,
the customers in premium segments will not like to associate
with popular brands.
There are six distinct factors that enable a comprehensive
understanding of distributed brand equity:

1. Brand Awareness
Customer knowledge of your products and services is an
important part of brand equity. But even better than customers
knowing you, is customers not being able to avoid thinking about
your brand. A leading indicator of the consumer's awareness of
your company is “conversation share,” or the amount of time
your brand comes up in everyday conversations about the
products and services you offer. Measuring brand awareness
among your target customers can take many forms. Some
methodologies used to understand how aware your ideal customers
are include:
Surveys and focus groups
Web traffic
Search volume for your brand and products
Social mentions and reviews
2. Preference Metrics
Consumer preference is a powerful factor in daily purchase
decisions; it’s the reason a customer may decide to travel
further and spend more money to access a product or service they
really like. Aspects of customer preference that can be
measured through focus groups, sales data and surveys can
include:
Brand Relevance: The extent to which your customers agree your
brand provides unique and specific value that is not offered
by your competitors.
Accessibility: The ability to provide your target market with
your products/services.
Emotional Connection: Your strength in forming emotional
connections with customers, a key factor in loyalty.
Brand Value: A measure of how much your customers are willing
to pay for your products and services.

3. Financial Metrics
Financial metrics surrounding brand equity are directly tied
to sales performance. If these indicators, related to the
financial value of your brand are increasing, your revenue is
likely to be moving in the same direction. Ways to measure brand
equity through related financial aspects include:
Price premium over competition
Average transaction value
Customer lifetime value
Rate of sustained growth
4. Output Metrics
What if your brand is investing time and budget into brand
equity-building and you don’t see results? Output is a measure
of marketing activity, which measures the marketing assets that
get released to the public. Output looks at how often marketing
materials are released, and the type of asset released to the
market place. Output can also be measured through the impact
of your brand-created offers in local markets.

Local activity impacts brand equity because assets that aren't

being utilized by a local store owner can't influence sales.
Similarly, poor-quality output – such as a direct mail offer
that's amateurishly edited by a local franchisee – may have
a serious negative impact on your brand equity. Three ways to
determine how your assets for local marketers are translating
into output are:

Local marketer campaign and asset utilization

Sales on promoted products
Customer adoption of loyalty programs
New call-to-action
5. Local Marketer Perception Metrics
For distributed brand management teams, there’s value in
thinking of your local marketers as customers. Your local
representatives all have influence over your brand equity
metrics; their local advertising and in-store customer
experience shapes awareness, preference and financial habits.
These factors influence their success and local customer
experiences – a dealer who doesn't prefer your brand is less
likely to have success selling your products to a customer. A
franchisee who doesn't have an instinctive connection to your
brand may use your marketing assets improperly.
Your local outlets are directly responsible for the way your
customers experience the brand. By monitoring local marketers'
sentiment, you can further understand whether brand equity is
increasing or decreasing and improve the quality of your
support to locals. Ways to measure local perception of your
brand include:
Surveys
Focus groups
Software adoption rates
Campaign deployment rates
6. Competitive Metrics
Your competitors’ brand equity has a direct influence on how
your company's brand equity trends. If competition
doubles-down and launches a campaign advertising a pricing
adjustment, your customer preference could dip for reasons that
have nothing to do with the work you're doing – and everything
to do with your competitor's brand.
Competitive metrics can reveal areas where your competition is
not providing value to customers, such as missing products,
poor customer experiences, or pricing. It can also reveal
tactics and campaigns that have resonated with your consumer
base. Metrics here include, but are not limited to:
Customer acquisition rate
Market share
Sales lift
ROI of distribution channels